Inventory Valuation Procedures

The value of stocks can increase or decrease over time due to differences in demand and supply or due to changes in inflation or interest rates.

Hence, the value of inventories held in the accounting books of the company must be adjusted upwards or downwards.

If the value of a stock increases, a stock valuation voucher is created.

When the value of a stock decreases, a stock depreciation voucher is created.


Stock Value Increase
Stock Value Decrease
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