Inventory costing and valuation that stays in step with the ledger
1flux inventory valuation software values stock by weighted average, FIFO or standard cost per company, and shows every cost layer behind the number.
In short
1flux is inventory valuation software built into 1flux Inventory. Each legal entity chooses weighted average, FIFO or standard cost. Every receipt creates a cost layer that later movements draw from, and a cost audit shows which layers remain and which are still provisional. Each receipt, delivery, write-off and count writes its journal at the same time as the stock, so the valuation report and the ledger stay in step, and a Stock vs ledger check flags any difference.
The problem
Stock value is where operations and finance usually part ways.
“The warehouse system knows quantities; the accounts hold a value somebody typed in at month-end.”
“Goods arrived before the supplier confirmed the price, so they were booked at a guess or not at all.”
“We want FIFO in one company and average cost in the other, and the spreadsheet can't cope.”
1flux values stock from the same documents that move it, per company, with an audit trail behind every number.
Choose a costing method for each company
In 1flux each legal entity sets its method under Ledger policies → Costing → Inventory costing. A UAE company and a Saudi subsidiary can use different methods in the same workspace.
Weighted average
The default. One running average cost per item per warehouse. See weighted average cost.
FIFO (first in, first out)
Stock is issued oldest receipt first, from separate cost layers. See FIFO.
Standard cost
A standard cost per item and entity; receipts at a different price post the difference to purchase price variance. Posting is refused if the standard cost is missing.
Not sure which to choose? Read weighted average or FIFO.
Cost layers: the receipts behind every value
A cost layer is the quantity and value left from one receipt. Deliveries, write-offs and count losses draw from those layers using the entity’s method, so every unit issued carries the cost it came in at.
The Cost audit page (“Follow receipt costs through remaining stock”) lists every layer with its status: Available, Provisional or Consumed.
- Tiles: Value remaining, Cost layers and Provisional.
- A Provisional layers by age chart: up to 7 days, 8–30, 31–60, 61–90 and over 90 days.
- CSV export.
Two receipts, one delivery, under FIFO
Example- Receipt 1: 100 at AED 6.20
- AED 620.00
- Receipt 2: 100 at AED 6.60
- AED 660.00
- Delivery of 150: 100 from receipt 1
- AED 620.00
- …and 50 from receipt 2
- AED 330.00
Cost of goods sold for the delivery
AED 950.00
Receive now, agree the price later
Many traders take delivery before the supplier price is final. 1flux handles this without stopping receiving.
- A buyer issues a purchase order without prices.
- Stores receive the goods. The goods receipt report posts them at a provisional cost: the last recorded purchase price, or the item’s standard cost if there isn’t one. If neither exists, posting is refused rather than guessed.
- 1flux flags the receipt on the Inventory overview (“N goods receipt reports still have provisional costs”), ages it in the cost audit, and lists “Clear provisional costs on goods receipt reports” on the month-end close checklist.
- The buyer chooses Agree prices on the purchase order. For an entity on weighted-average costing, 1flux revalues the stock still held intact from those receipts against goods received not invoiced, at the receipt-date exchange rate.
A purchase invoice is built only from receipts whose prices have been agreed, so a provisional cost never reaches the payable.
- Purchase order (No prices yet): Issued . Nothing posts.
- Goods receipt report (GRR-2026-0081): Provisional . Posts Dr Inventory , Cr GRNI.
- Agree prices . Nothing posts.
- Revaluation (At receipt-date rate) . Posts Inventory adjusted.
What should inventory valuation software show?
Inventory valuation software should show value per item and warehouse, in the company’s own currency, straight from the stock ledger. The 1flux Valuation report, “Quantity, availability and ledger value of every stock position”, does that.
- Tiles: Stock value, Stocked items, Warehouses and Below zero.
- Positions grouped by warehouse, with subtotals.
- Views for In stock, At zero and Below zero.
- Values in the selected entity’s base currency, with CSV export.
The Inventory overview adds stock value against 30 days ago and a 90-day trend. Foreign-currency receipts convert at the exchange rate dated on or before the posting date; if no rate exists, posting stops and asks for one.
Every stock posting writes its own journal
1flux writes the stock quantity, its cost layers and a balanced journal entry in one database transaction, through the single posting gateway that all of 1flux uses. Codes below are from the default GCC trading chart.
| Event | Journal |
|---|---|
| Opening stock | Dr 1200 Inventory / Cr 3100 Opening balance equity |
| Goods receipt report | Dr 1200 Inventory / Cr 2110 Goods received not invoiced. Non-stock lines: Dr 5200 Purchase expense. Standard cost differences: 5400 Purchase price variance |
| Price agreed later | Inventory revalued against goods received not invoiced (weighted-average entities, while the goods are still intact in stock) |
| Purchase invoice | Dr Goods received not invoiced, Dr 1400 Input VAT / Cr 2100 Accounts payable. Price differences (with a reason) to 5410 Invoice price variance; exchange differences to 5500 FX gain or loss |
| Delivery note | Dr 5100 Cost of goods sold / Cr 1200 Inventory |
| Write-off or count loss | Dr 5300 Inventory adjustment / Cr 1200 Inventory |
| Count gain | Dr 1200 Inventory / Cr 5300 Inventory adjustment |
| Transfer within one entity | No journal; the value moves with the cost layers |
| Reversal | The original journal is mirrored and the stock restored |
Every posting checks that the period is open, the date isn’t before the entity’s cutover, the backdating policy allows it and the accounts are mapped. A repeated submit never posts twice. System journals are corrected from their source document, never edited on the journal itself.
Post to the accounts each item needs
Under Item costs and accounts, an item can post to its own Inventory, Cost of goods sold and Purchase expense accounts instead of the defaults. The same screen holds each item’s standard cost per entity.
At posting, 1flux uses the item’s own account first, then your default mapping. If an account is missing, posting stops with a clear message and the Accounting overview flags it.
How does inventory valuation work in 1flux?
Six steps from choosing a method to a month-end valuation you can defend.
Pick a method
Choose one for each legal entity in the ledger policies.
Map posting accounts
Or install the GCC trading chart, and set item-level accounts where you need them.
Post opening stock
At agreed costs on your cutover date.
Receive
Through goods receipt reports, priced or provisional. See goods receiving.
Issue
Through delivery notes, write-offs and counts, at the entity's method. See stock control.
Review
Check the Valuation report and Cost audit, and clear provisional costs before you close the month.
Who relies on inventory valuation in 1flux?
The people who answer for what stock is worth.
Finance managers and accountants
Stock value that stays in step with the ledger.
Inventory controllers
An answer to “why is this item worth that?”
Groups
Companies that need different costing methods.
Which inventory costing methods does 1flux support?
1flux supports weighted average (the default), FIFO and standard cost, chosen per legal entity. Weighted average keeps one running average per item per warehouse. FIFO issues stock from the oldest receipt first. Standard cost values stock at a set cost per item and posts any receipt difference to purchase price variance.
Can two companies in our group use different costing methods?
Yes. In 1flux the costing method is a ledger policy of each legal entity, so one company can use FIFO while another uses weighted average or standard cost. Each entity also keeps its own base currency, valuation and books. Inventory pages and reports follow the entity selected in the top bar.
What happens when goods arrive before the price is agreed?
1flux posts the receipt at a provisional cost: the last purchase price, or the item's standard cost. The receipt is flagged on the Inventory overview and aged in the cost audit until the buyer agrees prices on the purchase order. For weighted-average entities, agreeing the price revalues the stock while it's still held intact, against goods received not invoiced.
Where does stock value come from in 1flux?
1flux values stock from cost layers created when goods receipt reports post, per warehouse and per legal entity, using the entity's costing method. Deliveries, write-offs and count losses draw from those layers, so every unit issued carries the cost it came in at. The Cost audit lists each layer as Available, Provisional or Consumed.
Can we see stock value for each warehouse?
Yes. The 1flux Valuation report shows the quantity, availability and ledger value of every stock position, grouped by warehouse with subtotals, in the selected entity's base currency, with CSV export. Views for In stock, At zero and Below zero sit under tiles for stock value, stocked items and warehouses. The Inventory overview adds stock value against 30 days ago and a 90-day trend.
What journal entries does 1flux post for stock?
1flux posts a balanced journal with every stock posting, in the same step as the stock. A goods receipt report posts Dr Inventory / Cr Goods received not invoiced, a delivery note posts Dr Cost of goods sold / Cr Inventory, and write-offs and count losses post Dr Inventory adjustment / Cr Inventory. A transfer within one entity moves its value with the cost layers.
How does 1flux handle backdated stock postings?
1flux lets each legal entity set a backdating policy for postings: don't allow, allow within open periods, or allow within a grace period. Every posting is checked against that policy and the entity's monthly periods. A closed period refuses every posting, and nothing can be dated before the entity's cutover date.
Inventory
One catalogue, live stock per warehouse and company, and every stock posting in the ledger.
Stock control
Snapshot counts, transfers and write-offs with reasons, each difference posted at cost.
Item master
Goods, services and digital products in one catalogue, in up to 7 languages.
Goods receiving (GRN)
Check deliveries in on a GRN, then post stock and the journal on a goods receipt report.
Automated posting
Receipts, deliveries, invoices and payments post balanced journals through one gateway.
1flux Accounting
Books that keep themselves: every receipt, delivery, invoice and payment posts its own journal.
Book a demo
Value your stock the way your accountant would
See a provisional receipt, a price agreement and the journals behind them in a 1flux demo.
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