diff --git a/models/inventory/InventorySettings.ts b/models/inventory/InventorySettings.ts
index 34dcb6f3..69b27da3 100644
--- a/models/inventory/InventorySettings.ts
+++ b/models/inventory/InventorySettings.ts
@@ -1,12 +1,10 @@
 import { Doc } from 'fyo/model/doc';
 import { FiltersMap, ReadOnlyMap } from 'fyo/model/types';
 import { AccountTypeEnum } from 'models/baseModels/Account/types';
-import { ValuationMethod } from './types';
 
 export class InventorySettings extends Doc {
   defaultLocation?: string;
   stockInHand?: string;
-  valuationMethod?: ValuationMethod;
   stockReceivedButNotBilled?: string;
   costOfGoodsSold?: string;
   enableBarcodes?: boolean;
diff --git a/models/inventory/StockTransfer.ts b/models/inventory/StockTransfer.ts
index bcc97fad..49c6509c 100644
--- a/models/inventory/StockTransfer.ts
+++ b/models/inventory/StockTransfer.ts
@@ -27,6 +27,7 @@ import {
   validateSerialNumber,
 } from './helpers';
 import { ReturnDocItem } from './types';
+import { getShipmentCOGSAmountFromSLEs } from 'reports/inventory/helpers';
 
 export abstract class StockTransfer extends Transfer {
   name?: string;
@@ -128,7 +129,7 @@ export abstract class StockTransfer extends Transfer {
       'stockInHand'
     )) as string;
 
-    const amount = this.grandTotal ?? this.fyo.pesa(0);
+    const amount = await this.getPostingAmount();
     const posting = new LedgerPosting(this, this.fyo);
 
     if (this.isSales) {
@@ -163,6 +164,14 @@ export abstract class StockTransfer extends Transfer {
     return posting;
   }
 
+  async getPostingAmount(): Promise<Money> {
+    if (!this.isSales) {
+      return this.grandTotal ?? this.fyo.pesa(0);
+    }
+
+    return await getShipmentCOGSAmountFromSLEs(this);
+  }
+
   async validateAccounts() {
     const settings: string[] = ['stockInHand'];
     if (this.isSales) {
diff --git a/reports/inventory/StockLedger.ts b/reports/inventory/StockLedger.ts
index 7d80e3ce..a86201a1 100644
--- a/reports/inventory/StockLedger.ts
+++ b/reports/inventory/StockLedger.ts
@@ -90,9 +90,7 @@ export class StockLedger extends Report {
   }
 
   async _setRawData() {
-    const valuationMethod =
-      this.fyo.singles.InventorySettings?.valuationMethod ??
-      ValuationMethod.FIFO;
+    const valuationMethod = ValuationMethod.FIFO;
 
     const rawSLEs = await getRawStockLedgerEntries(this.fyo);
     this._rawData = getStockLedgerEntries(rawSLEs, valuationMethod);
diff --git a/reports/inventory/helpers.ts b/reports/inventory/helpers.ts
index a18b0c16..28196d56 100644
--- a/reports/inventory/helpers.ts
+++ b/reports/inventory/helpers.ts
@@ -3,17 +3,22 @@ import { StockQueue } from 'models/inventory/stockQueue';
 import { ValuationMethod } from 'models/inventory/types';
 import { ModelNameEnum } from 'models/types';
 import { safeParseFloat, safeParseInt } from 'utils/index';
-import {
+import type {
   ComputedStockLedgerEntry,
   RawStockLedgerEntry,
   StockBalanceEntry,
 } from './types';
+import type { QueryFilter } from 'utils/db/types';
+import type { StockTransfer } from 'models/inventory/StockTransfer';
 
 type Item = string;
 type Location = string;
 type Batch = string;
 
-export async function getRawStockLedgerEntries(fyo: Fyo) {
+export async function getRawStockLedgerEntries(
+  fyo: Fyo,
+  filters: QueryFilter = {}
+) {
   const fieldnames = [
     'name',
     'date',
@@ -29,11 +34,73 @@ export async function getRawStockLedgerEntries(fyo: Fyo) {
 
   return (await fyo.db.getAllRaw(ModelNameEnum.StockLedgerEntry, {
     fields: fieldnames,
+    filters,
     orderBy: ['date', 'created', 'name'],
     order: 'asc',
   })) as RawStockLedgerEntry[];
 }
 
+export async function getShipmentCOGSAmountFromSLEs(
+  stockTransfer: StockTransfer
+) {
+  const fyo = stockTransfer.fyo;
+  const date = stockTransfer.date ?? new Date();
+  const items = (stockTransfer.items ?? []).filter((i) => i.item);
+  const itemNames = Array.from(new Set(items.map((i) => i.item))) as string[];
+
+  type Item = string;
+  type Batch = string;
+  type Location = string;
+  type Queues = Record<Item, Record<Location, Record<Batch, StockQueue>>>;
+
+  const rawSles = await getRawStockLedgerEntries(fyo, {
+    item: ['in', itemNames],
+    date: ['<=', date.toISOString()],
+  });
+
+  const q: Queues = {};
+  for (const sle of rawSles) {
+    const i = sle.item;
+    const l = sle.location;
+    const b = sle.batch ?? '-';
+
+    q[i] ??= {};
+    q[i][l] ??= {};
+    q[i][l][b] ??= new StockQueue();
+
+    const sq = q[i][l][b];
+    if (sle.quantity > 0) {
+      const rate = fyo.pesa(sle.rate);
+      sq.inward(rate.float, sle.quantity);
+    } else {
+      sq.outward(-sle.quantity);
+    }
+  }
+
+  let total = fyo.pesa(0);
+  for (const item of items) {
+    const i = item.item ?? '-';
+    const l = item.location ?? '-';
+    const b = item.batch ?? '-';
+
+    const sq = q[i][l][b];
+    const stAmount = item.amount ?? 0;
+    if (!sq) {
+      total = total.add(stAmount);
+    }
+
+    const stRate = item.rate?.float ?? 0;
+    const stQuantity = item.quantity ?? 0;
+
+    const rate = sq.outward(stQuantity) ?? stRate;
+    const amount = rate * stQuantity;
+
+    total = total.add(amount);
+  }
+
+  return total;
+}
+
 export function getStockLedgerEntries(
   rawSLEs: RawStockLedgerEntry[],
   valuationMethod: ValuationMethod
diff --git a/schemas/app/inventory/InventorySettings.json b/schemas/app/inventory/InventorySettings.json
index d0c6461c..fd1c6ceb 100644
--- a/schemas/app/inventory/InventorySettings.json
+++ b/schemas/app/inventory/InventorySettings.json
@@ -4,24 +4,6 @@
   "isSingle": true,
   "isChild": false,
   "fields": [
-    {
-      "fieldname": "valuationMethod",
-      "label": "Valuation Method",
-      "fieldtype": "Select",
-      "options": [
-        {
-          "value": "FIFO",
-          "label": "FIFO"
-        },
-        {
-          "value": "MovingAverage",
-          "label": "Moving Average"
-        }
-      ],
-      "default": "FIFO",
-      "required": true,
-      "section": "Default"
-    },
     {
       "fieldname": "defaultLocation",
       "label": "Default Location",