Setting up the base year LIFO valuation

The base year is the first year the Product LIFO Valuation Master List Report is generated for the LIFO category. It should be created at the beginning of the year. Use these instructions to set up the base year:

  1. Select System Administrator > Setup > Table Code Values.
  2. Select LIFO Category and click Create.
  3. In the Category field, specify a user-defined code to identify this LIFO category. Specify a description, and click Save.
  4. To assign the LIFO category to a product, select Product > Setup > Product and access the product record. In the Category section on the General view, specify the LIFO category you set up in SA Table Code Value Setup.
  5. Repeat step 4 to assign additional products to the LIFO category.
  6. Select Product > Setup > IC Extended LIFO Valuation.
  7. Click Create and specify these values:
    1. Specify the LIFO category you set up in SA Table Code Values Setup.
    2. In the Year field, specify 0 to indicate the base year.
    3. In the Index field, specify 100.
  8. Click Save.
  9. Select Product > Reports > IC Reports > LIFO Valuation Master List Report and run a new one-time report. Make note of the LIFO value on the report.
  10. Select Product > Setup > IC Extended LIFO Valuation.
  11. Select the base year record, click Edit, and specify these values:
    1. In the Layer field, specify the LIFO value of the inventory.
    2. In the Current Value field, specify the current cost of the inventory at the end of the year.
  12. Click Save.