Inventory close

[gbelot]

Hello,

Inventory close and adjustment post inventory adjustments that cause differences between inventory transactions at standard cost and inventory as posted in the ledger.
They revalue inventory back to FIFO, ultimately. We are trying to understand the impact if these processes were not run, but the std costs would still be changed at each month-end by a script. We would calculate an inventory revaluation by taking on-hand inventory qty at month-end and multiplying times the change in std cost. This would be posted to the ledger (inventory and PPV).

I would appreciate any comments on this approach. Are there any implications of not running Inventory close and Adjustment?

Thank you in advance.
gb