Assets & GRAP
Inventory & Stores Valuation
Carrying value of inventory and consumable stores by type.
Why Inventory Valuation Needs Control
Inventory and consumable stores must be carried at the lower of cost and current replacement cost under GRAP 12, and a stores function without disciplined counting and valuation is a soft spot for both misstatement and theft. Obsolete, slow-moving or phantom stock overstates assets and masks losses, which is why the AGSA tests stores valuation and the count behind it. AuditPro Core reports the carrying value of inventory and consumable stores by type so valuation rests on verified quantities and a sound costing basis.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Inventory Value
R 96 m
▲ 4% YoY
Slow-Moving
R 14 m
15% of value
Write-Downs
R 3.2 m
to NRV
Stock Count Variance
1.1%
within tolerance
Inventory Value by Type (R m)
Inventory Detail
| Type | Value (R m) | Slow-Moving (R m) | Write-Down (R m) |
|---|---|---|---|
| Water Pipes & Fittings | 34 | 5 | 1.1 |
| Electrical Materials | 28 | 4 | 0.8 |
| Building Materials | 16 | 3 | 0.7 |
| Fuel & Lubricants | 11 | 1 | 0.3 |
| Consumables | 7 | 1 | 0.3 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Measurement basis
Inventory held for use is measured at the lower of cost and current replacement cost, while inventory held for sale uses cost and net realisable value. Applying the wrong basis overstates the carrying value.
Obsolete and slow-moving stock
Stock that is damaged, obsolete or unlikely to be used must be written down to its recoverable value. A stores balance that never moves is a strong signal of unrecognised write-downs.
Count and cut-off
Valuation is only as good as the physical count and the cut-off applied at period end. Quantities not verified against a count, and goods received but not yet recorded, both distort the reported value.
How AuditPro Core Bridges the Gap
- Reconciliation: stores valuation reconciles counted quantities to the stock ledger, confirming recorded inventory actually exists.
- Exception workflow: obsolete, slow-moving and negative-balance lines are flagged for write-down or investigation.
- Audit-ready export: the inventory valuation by type exports for the inventory note and the auditor's existence and valuation testing.
- Traceability to source: each balance links to receipts, issues and counts, supporting both quantity and cost.
Key Takeaways
- Apply the correct GRAP 12 basis, usually lower of cost and replacement cost.
- Write down obsolete and slow-moving stock rather than carrying it at full value.
- Valuation is only as reliable as the count and cut-off behind it.
- A never-moving balance signals unrecognised write-downs.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.