in my company we are using standard costing system, all costs of our products are based on Bill of Material and routing.

the industry we are working in is rapidly changing so our engineers are always changing the bill of material, and as a result for that our inventory valuation is changing and we get revaluation amount in our ledgers which is equal to (old inventory value - new inventory value)

is there any solution for this? when i re calculate the cost after production pepole changes the bill of material there is one option to actualize the inventory, what will happen if i didn't select this opption.

please if any one knows or has any documents for this please help me.

Have you try using MAUC valuation methods?

yes, we were using MAUC before, but our group finance change the policy to the standard costing method and since that time i'm suffring

Revaluation is nothing but the value correction entry for any change in the item valuation as per latest cost. In finance and as business required it is nothing worng to account difference in inventory value.

To give effects of such valuation chnage and generate financial transaction for the same it is required to actualize inventory valuation.