Follow these steps to implement either LIFO or FIFO
inventory cost method:
-
Select the Post to Journal check
box on the General Parameters form to
have all transactions which affect inventory post to the G/L inventory
distribution journal. Clear the check box to suppress posting to the
G/L those transactions which may affect inventory.
-
Set the Cost Method field on the
Items form, General
tab to LIFO or FIFO
for all items. (Ideally, you will set this field at the time the items
are added to the Items file).
-
Set the Cost Type field on the Items form, General
tab to Actual. The cost type default
value comes from the Cost Type field
on the Inventory Parameters form when
adding new items.
-
Enter the initial cost for the item into the Unit
Cost field in the Items form
at the time the item is added to the file.
Note: When the
beginning inventory balance is entered by way of a stock adjust transaction,
a record is created in the Item LIFO file with the current date, time,
quantity, and the cost that is entered. If an item has no beginning
inventory balance, leave a zero in each of the Unit
Cost Detail fields and a LIFO/FIFO stack will be created as
the item is received into inventory.
-
If you have entered Actual in the
parameter default Cost Type field,
and selected the Post to Journal check
box to indicate that the manufacturing modules are to post inventory
transactions to G/L, you must also set up the G/L account numbers
that the system uses for this interface. Specify this information
for costing purposes:
Note: You are allowed
to delete any distribution account record, including the default distribution
account with a blank warehouse and blank product code.