Inventory Valuation by GL Ledgers

Overview

There are two approaches to track inventory valuation by GL Ledger:

Segregate by Items

If the same inventory item is used across multiple ledgers, you can create separate copies of the item and assign the appropriate GL Ledger to each one.

• This option is recommended if the GL Ledgers have different base currencies.

• You do not need to assign a GL Ledger to service items, even if they are used in multiple ledgers, as there is no inventory sub-ledger required for service items.

• If the GL Ledger is specified in the transaction header, all inventory items on that transaction must belong to the same GL Ledger.

• If an item has open Item Ledger Entries, the GL Ledger on that item cannot be changed. In this case, zero out the inventory for the old items and post the inventory to the new items.

Segregate by Warehouses

If creating multiple copies of the same item is not practical due to operational requirements (such as UPC management, barcode scanning, or supplier constraints), you can segregate inventory valuation by Warehouse instead.

Enable Inventory Ledgers by Warehouse

To activate this feature, create a new Custom Setting record with the following values:

• Name: MultiLedgerUseWarehouse

• Value: True

• If your GL Ledgers use different base currencies, hide all currency-dependent fields (such as Inventory Valuation and Unit Cost) from the Item page layout.

• Use reports to retrieve accurate inventory valuation and costing information from each GL Ledger instead of relying on Item-level fields.

Configuration Requirement

Assign a GL Ledger to each Warehouse to ensure that transactions are properly recorded according to the corresponding financial ledger.

Ensure the GL Ledger for transactions like Sales Orders, Purchase Orders, Item Journals, and Work Orders matches the GL Ledger of the warehouse.

When transferring inventory, the GL Ledger of the From Warehouse and To Warehouse must be the same.

Article Inventory-Valuation-by-GL-Ledgers  ·  Last updated October 19, 2025 · GoldFinch ERP Help Center