Valuation On Hand: The quantity on hand that tracks with your GL balances. This figure is the accurate On Hand quantity according to GAAP* and legal standards. For customer orders, Valuation on Hand only pays attention to invoiced quantities.
*GAAP: Generally Accepted Accounting Principles
On Hand: The quantity you physically have in stock. On customer orders, 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.
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Evosus recommends always invoicing when delivering items. This will make tracking quantities and managing physical counts much easier in Evosus.
There are two different ways that Evosus tracks Item Quantity:
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Valuation on Hand
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On Hand.
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You can see these quantities by viewing the quantity tracking grid in Evosus (Inventory > Quantity tracking grid > Expanded view > On Hand and Valuation on Hand).
**The On Hand quantity listed on the physical count sheets is referencing Valuation on Hand.
When physical On Hand quantity is lower than the Valuation on Hand Quantity. This occurs when items are marked as delivered. Marking items as delivered reduces the physical On Hand quantity but NOT the Valuation on Hand quantity.
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The Valuation on Hand quantity is ONLY reduced when an item has been invoiced. (If it’s easy for you to remember. Valuation = Invoiced. They both have V’s).
Invoicing commences the legal transfer of ownership from the business to the owner. Therefore, items invoiced, but not yet delivered, should not be included in unsold inventory.
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We recommend setting items that are invoiced, but not delivered, aside from in a will-call area.
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If you do not have the space to accommodate a will-call area, tag those items as Do Not Count