Sage X3 provides several valuation methods, such as Standard Cost, Revised Cost, Average Cost, FIFO, and LIFO, and it allows you to define primary and secondary valuation methods at the product‑site level. These methods control how stock movements (receipts, issues, internal transfers, manufacturing) affect stock value. Once you choose a valuation method, Sage X3 maintains the valuation based on stock transactions.

Some examples include:
Standard Cost: The stock value remains fixed at a standard amount per fiscal year.
Revised Cost: Values recalculated by actual transaction cost within a defined date range.
Average Cost (AVC): Cost is recalculated based on the weighted average of receipts.
FIFO / LIFO: Costs are assigned based on chronological layers.

Why costs go “Out of Whack”
Despite strict rules, inventory costs can become inaccurate due to:
Incorrect receiving costs.
Back‑dated transactions.
Missing or delayed cost adjustments.
Period closures preventing recalculations.
Please note that when valuation methods such as Average, FIFO, or LIFO are used, and the “adjust issues cost” parameter is set to Yes on the valuation method function, cost adjustment records are generated to revalue subsequent transactions. But these only update correctly when the Cost Adjustment function is run.

Fixing bad costs by issuing out and issuing In:
When a product shows an incorrect cost, one of the most practical and cleanest fixes is to:
Issue out all quantities at the incorrect cost using Sage X3 Miscellaneous issue function, then re‑receive the product (using Miscellaneous receipt) with the same quantities back at the proper/correct cost.
This method uses standard stock transactions and ensures proper audit trails.

Why this works?
1. Issues and receipts are valuation‑controlled events: Sage X3 recalculates average prices and margins based on actual stock issue/receipt movements.
2. Re‑receiving the product creates a new cost layer: This overrides the problematic cost and aligns future issues with the corrected valuation.
3. It avoids manipulating historical costs: Direct database changes or altering posted transactions can create audit and reconciliation issues.
4. It ensures compliance with period closures: If a period is closed, Sage X3 will not allow cost adjustments to prior periods. The issue‑out/issue‑in method posts into an open period, maintaining integrity

When to use this method?
The issue‑out/issue‑in method is best when:

• The product’s cost is completely incorrect.
• Historical layers are corrupted or mismatched.
• The period of the bad transaction cannot be reopened.
• Cost Adjustment does not correct the problem.
• You need a clean future cost without altering past accounting.