--- title: "Why is my valuation rate or stock value negative or abnormally high?" space: "ERPNext" url: "https://docs.frappe.io/erpnext/why-is-my-valuation-rate-or-stock-value-negative-or-abnormally-high" updated: "2026-10-13" --- A negative or very high valuation rate almost always comes from one wrong stock transaction, not from a bug in the valuation method. Find that transaction in the **Stock Ledger**, correct it, then run **Repost Item Valuation** so every later entry is recalculated. You may be seeing one of these symptoms: - **Stock Balance** shows a negative *Balance Value* while the quantity is positive. - The valuation rate of an item suddenly jumps to 10x or 1000x its normal cost. - *Cost of Goods Sold* on a Delivery Note or Sales Invoice is far too high, or negative. - A BOM or Stock Entry picks up an unexpected rate for a raw material. ## Common causes The valuation rate is the balance value divided by the balance quantity. So when a value is booked at the wrong rate, and only a small quantity is left, the rate is pushed far off. | Cause | What goes wrong | What you see in the Stock Ledger | | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | | **Negative stock** | With *Allow negative stock* on in **Stock Settings**, stock is issued before it is received. The outgoing entries use a guessed or old rate. When the receipt arrives, its rate is different, and the gap stays in the balance value. | *Balance Qty* goes below zero, then a receipt is followed by a jump in *Avg Rate (Balance Stock)* or a negative *Balance Value*. | | **Zero-rate receipts** | A Purchase Receipt, Material Receipt or Stock Reconciliation is saved with a rate of 0 (often with *Allow Zero Valuation Rate* ticked). This drags the average down. Later issues at the old rate can take out more value than is left. | *Incoming Rate* is 0 on a receipt, followed by a falling rate and later a negative *Balance Value*. | | **Backdated entries** | A transaction posted before existing entries changes the rate of every later entry. If the repost is still queued or has failed, later entries keep their old values. | Entries after the backdated one do not add up. A **Repost Item Valuation** record for that item shows *Queued* or *Failed*. | | **Serial No items** | Each Serial No carries the rate it was received at. If a serial number came in at the wrong rate (or at 0), every transfer and delivery of it moves that wrong rate. | *Incoming Rate* on a Material Transfer or Delivery Note is very different from the item's usual cost. | | **Wrong UOM conversion** | The item is bought in one UOM (for example *Box*) but stocked in another (*Nos*). A wrong *UOM Conversion Factor* divides the amount over too few or too many units. | *In Qty* looks wrong for the document, and *Incoming Rate* is a multiple (for example 12x) of the expected rate. | ## Find the entry where the rate went wrong The **Stock Ledger** report lists every movement of the item in order, so you can see the exact voucher where the rate broke. 1. Go to **Stock > Reports > Stock Ledger**. 2. Set *Company*, *Item* and *Warehouse*. Set *From Date* far enough back to cover the last time the rate looked normal. 3. Read these columns from top to bottom: - **Incoming Rate** — the rate of each receipt. Look for a 0, or a rate far above the normal cost. - **Balance Qty** — look for any row where it goes below zero. - **Avg Rate (Balance Stock)** — the valuation rate after each entry. Find the first row where it jumps or turns negative. - **Balance Value** — this should be close to *Balance Qty* x *Avg Rate*. A negative value with a positive quantity marks the problem. 4. Open the voucher in *Voucher #* on that first wrong row, and the receipt just before it. One of them is your source entry. Check one warehouse at a time. Each warehouse has its own valuation rate, so a problem in one can look like a sudden jump in a transfer to another. To find all affected items at once, use the **Stock Ledger Invariant Check** and **Incorrect Stock Value Report** reports. Also check the **Repost Item Valuation** list for records with status *Failed*. ## Fix the source entry, then repost Correct the source entry first. Reposting alone runs the same wrong numbers again. **1. Correct the source entry** | If the cause is | Do this | | ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------ | | Negative stock | Post the missing receipt with a posting date and time *before* the first issue, so stock never goes below zero. | | Zero-rate receipt | Cancel and amend the receipt with the correct rate. For a Stock Reconciliation, amend it with the right *Valuation Rate*. | | Wrong rate on a Purchase Receipt | Cancel and amend it. If only freight or duty is missing, use a **Landed Cost Voucher** instead. | | Wrong UOM conversion | Fix the *Conversion Factor* in the item's UOM table. Then cancel and amend the affected documents. | | Serial No received at the wrong rate | Cancel and amend the original receipt of that Serial No. Later transfers and deliveries pick up the corrected rate after the repost. | **2. Run Repost Item Valuation** Cancelling or amending a backdated entry usually creates a repost on its own. Create one by hand if it did not, or if the earlier one failed. 1. Go to **Repost Item Valuation > New**. 2. Set *Based On*: - **Item and Warehouse** — enter *Item Code*, *Warehouse*, and the *Posting Date* and *Posting Time* of the source entry (or slightly earlier). - **Transaction** — enter the *Voucher Type* and *Voucher No* of the source entry. 3. Save and submit. The repost runs in the background. Its *Status* moves from *Queued* to *In Progress* to *Completed*. 4. If the status is *Failed*, read the *Error Log* field. It usually names a negative-stock row you still need to fix. Fix it and click *Restart*. 5. Run the **Stock Ledger** again and confirm that *Avg Rate (Balance Stock)* is now normal. The repost also updates the General Ledger, so stock and accounts values match again. Reposts can be limited to certain hours in **Stock Reposting Settings**; if nothing happens, check the timeslot there. ## Why the BOM or Sales Invoice rate can differ from the Stock Ledger The rates in a BOM and on a Sales Invoice are taken at a different time, or from a different place, than the Stock Ledger. A difference is not always an error. | Document | Where its rate comes from | Why it differs | | ------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **BOM** | *Rate of Materials based on*: Valuation Rate, Last Purchase Rate or Price List. With Valuation Rate, it takes the average across warehouses (or the source warehouse, if set). | The cost is fixed when the BOM is saved. It changes only when you click **Update Cost**, or when *Update BOM Cost Automatically* is on in **Manufacturing Settings**. The Stock Ledger is per warehouse and current. | | **Sales Invoice** | The *Rate* is the selling price from the Price List or Pricing Rule, not the cost. | Cost of goods sold is booked by the Delivery Note, or by the invoice only when *Update Stock* is ticked. That uses the valuation rate at its posting date and time. | | **Delivery Note / Stock Entry** | The valuation rate at the posting date and time, in the source warehouse. | A later backdated entry changes this rate after the document is submitted. The repost updates it, but a printed copy keeps the old value. | If the BOM shows a wrong raw material cost, fix the raw material's valuation first (see above). Then open the BOM and click **Update Cost**. ## Prevent it Most of these problems stop once negative stock is off and every receipt carries a real rate. - **Keep negative stock disabled.** In **Stock Settings**, leave *Allow negative stock* unticked. Users then cannot issue stock before it is received. - **Set a valuation rate on every receipt.** Do not tick *Allow Zero Valuation Rate* unless the item is truly free, such as a free sample. Set a *Valuation Rate* on the Item master for opening stock and free items. - **Check UOM conversion factors** on the Item master before the first purchase in a new UOM. - **Limit backdated entries.** Use *Role allowed to create/edit back-dated transactions* in **Stock Settings** so only a few users can post them. - **Watch the repost queue.** Check the **Repost Item Valuation** list each week for *Failed* records. Fix each one before more entries pile up on top. ## Still need help? If the rate is still wrong after a completed repost, raise a ticket on [support.frappe.io](https://support.frappe.io). Include: - The item code and warehouse - A Stock Ledger export covering the period where the rate went wrong - The name of the Repost Item Valuation record, and its *Error Log* if it failed