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An understanding Valuation On Hand vs physical Quantity On Hand in the Physical Count process is very important. This module will review Valuation On Hand to provide a better understanding of this concept.
Valuation on Hand Tracks with your GL balances. This figure is the accurate on hand quantity according to GAAP (Generally Accepted Accounting Principles ) and legal standards. For customer orders, Valuation on Hand only pays attention to invoiced quantities On Hand. On Hand only pays attention to item delivery. If you invoice and deliver at the same time, Valuation on Hand and On hand will always match. If invoicing and item delivery is not simultaneous, the quantities will not match.
- Example: You deliver items on an order, but you don’t invoice the order You invoice the order but don’t deliver the items