18 lines
960 B
Markdown
18 lines
960 B
Markdown
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# Item Valuation Methods and Transactions
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In ERPNext, Item's stock valuation is updated on the creation of one of the following transaction.
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1. Purchase Receipt
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2. Stock Entry of type Material Receipt
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3. Stock Reconciliation made for updating stock opening balance
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You can select valuation method based on which item's value will be calculated. Valuation Method can be set globally for all the items from the Stock Settings.
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<img class="screenshot" alt="Download Backup" src="/docs/assets/img/articles/item-valuation-1.png">
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You can also set Valuation Method in the item master, especially when a valuation method for an item is different from the default Method.
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<img class="screenshot" alt="Download Backup" src="/docs/assets/img/articles/item-valuation-2.png">
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[Click here to learn about the valuation methods available in the ERPNext, and how it works.](https://frappe.io/blog/erpnext-features/inventory-valuation-method-fifo-vs-moving-average)
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