Inventory Management - EBS (MOSC)

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How to capture Impairment in value of inventory items

edited Jul 21, 2015 10:00AM in Inventory Management - EBS (MOSC) 2 commentsAnswered

Inventory should be valued at the lower of cost and Net Realizable value.

A consumable / raw material item has Qty = 100 Nos.

10 units are damaged and their NRV has fallen below their cost.

How will this be captured in system?

If item cost is updated to reflect this impairment, then it will affect the cost of all 100 units whereas the impairment has only occurred in 10 units.

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