A Inventory Revaluation Journal Entry is a type of accounting entry used to update the value of inventory in the books. This takes place when the market value of an item has shifted during an extended period of time, meaning that either more or less money must be added to the Inventory Account. This adjustment can be made on a quarterly, half-yearly, or yearly basis – depending on the frequency of analysis. By ensuring that the Inventory Account reflects accurate values, businesses can get a better grasp of their profitability and overall financial health.