Hello Laura,

Did you ship the 100 units before you processed the receipt of the 500 units? I think that a basic source of the confusion here is that Inventory is not strictly date sensitive. So, if I ship 100 units on an invoice dated December 2 and post it all the way through, I end up with -100 units in inventory with $0.00 cost. If I then receive 500 units for $500 on a receipt dated December 1st, I end up with 400 units in stock with a value of $500 regardless of the fact that the receipt is dated before the shipment. The receipt must be processed before the shipment.

The inventory valuation report does not include recent and standard costs because it does not know what those values were at the date the report is being printed (it only knows the current values), and those two numbers are not relevant to the inventory valuation number that is in the general ledger. Our thought was that the only reason to be printing a back dated inventory valuation report would be to get one that would tie back to the figure in the general ledger.

Make sense?