Configure revaluation method

You can configure how item costs are handled for sublots by setting up sublot revaluation methods on the Location Card page:

In the Revaluation Method field, select the method that determines how item costs should be adjusted when sublots are created or reclassed into the location. The available options are:

• Write-Off: The system creates a revaluation journal that assigns zero to the new lot. This method is typically used for by-products or packaging materials without carrying cost (for example, empty trays after packaging).
• Redistribution: The system creates a revaluation journal that reallocates the cost back to the original lot. This ensures accurate valuation under costing methods such as FIFO, where the original lot retains the cost.

When you execute the Creat Sublot (Actions > Other ) action on the Lot No. Information Card page, a revaluation journal is created based on the selected method for the new lot or adjusted accordingly when the item/lot is reclassed into the destination location.