Configuring And Using The Stock Devaluation Tool

What is the Stock Devaluation Tool?

The stock devaluation tool is designed to help businesses manage dormant or slow-moving stock. It allows you to identify products that have not been traded for a set period of time (commonly twelve months) and apply a devaluation by a chosen percentage.

By reducing the value of older stock, your sales team can offer more competitive prices while maintaining a sensible gross margin. At the same time, the devaluation creates a stock movement in the trading system, ensuring that your financial records stay accurate. A dedicated dormant stock view has been added to the Products menu, supported by reporting and bulk editing functions to make the whole process efficient and transparent.

Setting up the Stock Devaluation Tool

The dormant stock utility includes a number of settings that control how stock is identified, managed, and revalued. These settings allow you to define what qualifies as dormant, configure the percentage devaluation to be applied. By adjusting these options, you can tailor the process to fit your business requirements.

Switching on the Tool

This is a premium feature, and additional subscription fees may apply; as such, it can only be activated by the Ten25 Administrator. Please contact the support to have the stock devaluation tool switched on.

Once it is switched on, make sure your employees are configured to have access to the new tool. 

A prime user can go to Settings → User Administration → Employees 

Then to the employee roles tab.

A stock devaluer can then be set from the drop-down.
There is no need to save on this screen; your selection will be saved automatically.

You can configure the devaluation tool from the devaluation view in Products → Stock Devaluation 

This will take you into the stock devaluation view. From here, you can see a list of your previous devaluation batches and look at them. Start a fresh batch or set some configuration for how to create your batch and the devaluation applied.

If you click the configuration button up in the top right, in the pop-up that opens, you can set 1 or 2-tier devaluations with the slider. Set how far back in months to look for products that have not sold, and by what percentage the value of the stock holding will be reduced by. If switched on, you can then set the date range and the percentage reduction on the second tier. A sold product includes sales to customers or use as a mill input. Inter-branch transfers do not count as sales.
You can then set how many months to exclude recently purchased stock for, and the number of months to ignore previously devalued stock. You can cancel any changes made, save your changes or jump straight into building a batch from this configuration.

Running a devaluation batch.

Before you can use the tool, your user account must be given permission to devalue stock. This is controlled by your administrator.

Go to Products → Stock Devaluation. From the stock devaluation view, if you click the green New Stock Devaluation button up in the top right, the new batch pop-up will open.

You can do one or two-tier devaluations, set this with the green slider.

Next, you can give your batch a name to help identify it. You then need to set the date devaluation base date. This is the date you want the tool to work back from, and from that, the configuration settings will be used to work out all the other dates in the pop-up automatically.

You can manually override any of the preset dates if required. Just click the calendar and select a new date.

The amount to devalue the goods by can also be overridden from the preset configuration if required, just type the number in the field.

Once you are happy with the setup up click the Build batch button. Please note that it can take a little while to build your batch if you have a lot of products that meet the criteria.

After a short time processing, you will receive a little information report that tells you how many stock holdings you have in your report. 

Once you click OK, you will be taken to a new window for the full report of all of the products identified.

This shows all of the information about your devaluation in the header, You then have the ability to export the postings to Excel or export the information of the entire batch to Excel from the two blue buttons there is a search and filter so you can search for specific products, products that checked or unchecked for processing, You can filter by product category or you can search on the last devaluation date. You will also notice some grey buttons. Select All will select every filtered record, and deselect will deselect them. Clicking the include button with a product highlighted, we'll include it in the devaluation batch and by contrast, clicking exclude will remove it from the batch. The toggle button will just change its state to the opposite of the state that it is in now. Selecting a product and clicking the Show Movements button will take you to a graph of the movements. 

The report itself lists all products identified by your criteria, their physical stock, Average cost price, their value before devaluation, what devaluation is being applied, the valuation after and how much has been written down by. There is also a field to denote whether or not the product has been processed.

At this stage, it is wise that you carefully check all of the product records and their devaluations to make sure that you are happy. If you click on a product, you will see the depot information under the product listing (if you are a multi-depot company)

You can use the exclude or include buttons as required to build your exact batch for devaluation.

Once you are happy, click the process batch back button to perform the revaluation of the product costs.

In my example I will just devalue my timber products To do this I will first click the Select All button to highlight every product in the batch

and then click the exclude button to exclude every single product from this batch 

next I will apply a category filter for just the timber products 

and then click select all and then Include to bring all my timber products into the batch.

Our header has now been updated to show the batch totals

After careful checking, if you are happy with the batch, click the process batch button.

You will now get a security confirmation screen, where you have to type in the security number before you can proceed and devalue your stock.

One final warning will now pop up for you to confirm that you really do want to process this batch. It is important to make sure your batch is correct, as this process cannot be undone once you've started it and to repair the changes, you may have to go and edit the products individually. Click No if you need to back out and Yes if you are happy to continue.

You will receive a confirmation message to tell you that your batch was successfully processed. All the products in your batch should now have been devalued according to your configuration. If we go check one out.

Open the product record and go to the Movements tab. You should now see movements to confirm your devaluation.

You will be able to confirm the 75% cost reduction of this product from the cost price tab, here, you can see the last and current cost price.

The stock devaluation tool provides a controlled way to write down the value of dormant or slow-moving products. With flexible filters, detailed reporting, and built-in safeguards, you can confidently manage stock values and ensure accurate reporting while freeing your sales team to move older stock at competitive prices.

Video Guide

How to Use The Stock Devaluation Tool