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Purchase and Inventory · 18 min · 18–20

Replenishment, lots and serials, and inventory valuation

Reordering rules and the replenishment report, lot and serial tracking with expiry, and costing methods with automated valuation.

In this lesson

Key points

Real-world example

A Kano rice importer's margins swung wildly. Product cost was standard price set two years ago. Switching the category to AVCO with automated valuation and recording landed costs for shipping and duty made cost of goods match reality, and the CFO stopped exporting to Excel to 'fix' margins.

Questions and answers

What does a reordering rule's max quantity do?

Orders up to the max when stock forecast falls below the min.

Where is the costing method set?

On the product category.

Read the full lesson, worked example and quiz