SAP Component or Feature Available
Perpetual Inventory Management
Enables companies to run perpetual inventory system which reflects
the value of stock postings in terms of monetary transactions in
the accounting system. These monetary transactions will be carried
out only when items defined as warehouse items are received or
released from stock.
SAP Business One supports the following valuation methods: standard
price, moving average and FIFO. The default valuation method for
new items can be defined in the company level and/or in the item
group level. The user can assign to each item the relevant
Although it is not recommended from the accounting perspective, SAP
Business One 2005 A SP01 tolerates situations of negative inventory
and performs the required adjustments to ensure accurate
calculation of inventory values. This can be relevant only when
using moving average and FIFO valuation methods.