Stock Valuation
Calculate the value of your stock at cost or selling price. Free inventory report.
In short
Stock valuation is the total worth of the goods you hold on a given date, calculated as quantity multiplied by rate for every item. VyaparKit's Stock Valuation tool reads your saved items and their live quantities and gives the total at cost price or at selling price, with a per-item breakup, for your balance sheet, insurance policy and the bank's monthly stock statement for a CC or OD limit.
Create a Stock Valuation in under a minute
Sign in once with Google or email. Your business name, GSTIN, logo, bank details and saved customers fill in automatically. Download a PDF or share a link on WhatsApp. 3 sheets a month are free, forever.
- ✓Beautiful PDF with your logo and details
- ✓GST calculated automatically where applicable
- ✓Saved customers, vendors and items, so no retyping
- ✓Share link with WhatsApp button and UPI QR
- ✓Converts to related documents in one click
About the stock valuation tool
Stock valuation puts a rupee figure on the inventory you hold. Indian businesses need it more often than they expect: closing stock on 31 March for the profit and loss account and income tax return, a monthly stock statement to the bank if you have a cash credit or overdraft limit, a sum insured for the fire and burglary policy, and a quick net worth check when applying for a loan or bringing in a partner. Accounting standards (AS 2 and ICDS II) require inventory to be valued at cost or net realisable value, whichever is lower, so the cost figure is the one your CA will ask for.
Doing this in Excel means exporting an item list, typing in quantities from memory or a count, hunting for cost prices in old purchase bills and multiplying it all with a formula that breaks when a row is inserted. The result arrives late for the bank, and often a different number goes to the insurer. VyaparKit already holds each item with its cost and selling price, and the quantity moves with every invoice, challan, purchase bill and goods receipt, so the valuation is a single screen: pick cost or selling price, and download the report.
Before a valuation that matters, run a Stock Count Sheet and correct any variances so the quantities are real. Purchase bills feed the cost side, invoices the sales side, and the same items drive the Low-stock Calculator. Ledger and stock reports are limited to 3 a month on Free and unlimited on Pro.
How to value your stock in VyaparKit
- 1
Make sure item quantities are right
Print a Stock Count Sheet, count, and correct any item whose quantity is off. A valuation on wrong quantities is worthless to a bank or an auditor.
- 2
Check cost and selling prices on items
Open Items and confirm each item has a cost price (what you last paid, excluding GST if you claim ITC) and a selling price. Purchase bills you record give you the latest cost.
- 3
Open Stock Valuation
Go to Stock, then Stock Valuation. Choose the basis: At cost for the balance sheet, tax and bank stock statement; At selling price for insurance discussions or a quick sales-potential view.
- 4
Review the per-item breakup
Each item shows quantity, rate and value. Items with a zero or oddly high value usually have a missing price or a unit mismatch. Fix the item and refresh.
- 5
Download and use the report
Click Download PDF. Send it to your CA for closing stock, attach it to the bank's stock statement format, or keep it with the insurance policy as proof of sum insured.
What a stock valuation report should show
- Valuation date, so the bank or auditor knows which day's quantities are being valued.
- Item name, SKU, unit, quantity on hand, rate and value (quantity x rate) for every item.
- The basis used: cost price (for books, tax and bank) or selling price (for insurance or sales potential). Never mix the two in one total.
- Cost excluding GST for a regular registered dealer who claims input credit; including GST for a composition dealer or exempt goods, because that tax is a real cost.
- Exclusion of damaged, expired and obsolete stock, or a separate line for it at net realisable value, per AS 2 and ICDS II (lower of cost or NRV).
- Goods held on approval or on a delivery challan for job work, which are still your stock even though they are not on your premises.
- For a bank stock statement: the bank usually also asks for debtors (from the Outstanding Statement) and creditors (from the Payables Statement) to compute drawing power.
- Signature of the proprietor or partner and the business name, GSTIN and address from your profile.
Who uses the stock valuation
Traders with a CC or OD limit
A steel trader in Ghaziabad submits a stock and book-debt statement to the bank every month. The valuation at cost, the outstanding statement and the payables statement together give the bank the numbers it needs for drawing power.
Year-end closing stock for the CA
A garment wholesaler in Surat counts on 31 March, corrects quantities in VyaparKit and sends the cost valuation PDF to the CA the same evening. The closing stock figure goes straight into the P&L.
Insurance sum insured
A mobile shop reviews its stock value at cost every quarter and adjusts the fire and burglary cover so a claim is not reduced for under-insurance.
Partnership and loan applications
When a new partner joins a hardware store, both sides agree on the stock value at cost on the joining date, backed by a count sheet and the valuation report.
Stock Valuation: frequently asked questions
- Should stock be valued at cost price or selling price?
- For the balance sheet, income tax and the bank, value at cost, because accounting standards require the lower of cost and net realisable value and selling price would show profit before the sale happens. Selling price is useful for insurance discussions, retail shrinkage analysis and understanding how much sales revenue is sitting on the shelf. VyaparKit gives both; label which one you are sharing.
- What is a stock statement for a bank cash credit limit?
- Banks that lend against stock (CC or OD limits) ask for a monthly or quarterly statement of stock, debtors and creditors. The bank applies a margin (often 25 percent on stock) to compute drawing power, the maximum you may withdraw. Late or inconsistent statements can trigger penal interest or a limit review, so an on-time valuation at cost matters.
- Is GST included in the cost of stock?
- If you are a regular registered dealer claiming input tax credit, cost excludes GST because the tax is recovered as credit and is not part of your cost. If you are under the composition scheme or the goods are exempt or the credit is blocked under Section 17(5), the GST you paid is a real cost and is included. When in doubt, check with your CA.
- How do I value stock that has expired or is damaged?
- At net realisable value, which is what you can actually sell it for minus selling costs. For expired medicines or food that must be destroyed, that is zero, and the item should be removed from closing stock and written off. Keep a note of what was written off and why; auditors and insurers ask.
- Which cost does VyaparKit use: latest purchase price or an average?
- The valuation uses the cost price saved on each item. Keep it current by updating the item when a purchase bill shows a new rate. If your CA needs FIFO or weighted average cost for a large, price-volatile inventory, use the per-item report as the quantity base and apply the method in Excel or with your CA.
- Does goods sent on a delivery challan count as my stock?
- Yes. Goods sent for job work, on approval or to a branch on a delivery challan under Rule 55 remain your property until an invoice is issued, so they belong in your stock valuation even though they are not on your premises. Track them separately in the report notes so the bank or auditor can reconcile to the count.
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