InventoryDefinition of Inventory in Hotel Operation? Inventory is the stocks of merchandise; operating suppli... Valuation Sheet

Inventory valuation is an F&B controller practice that is followed by many hotels to find out the value of unsold inventory stock at the time they are preparing their yearly stock and inventory audit. Inventory stock is an asset for any hotel organization, and to record it in the balance sheet, it needs to have a financial value. This value can help you determine your inventory turnover ratio, which in turn will help you plan your purchasing decisions.

To give you an example, in the hotel and restaurant business and you’re left with 10 bottles of wine at the end of the year, then you need to calculate their financial item purchase amount, Item value (sell price), Inventory value (high or low based on price inflation) and record it in your balance sheet. Find below an example Valuation Sheet used in hotels.