Inventory valuation

To meet the various reporting principles, organizations must be able to value inventory according to various cost or pricing rules and multiple coexistent valuation bases. Some examples are LIFO, FIFO, Average, Historical Average, Net Sales Value, Obsolescence, Actual, WIP, Standard, Usage, Periodic, Perpetual, Serial/Lot.

The various inventory valuation methods can affect the valuation of direct materials, labor, and overhead.

Brazil specifics

Brazilian law requires that for all the items, purchased or manufactured, the cost calculation and cost account is based on the average cost.

How Infor meets this requirement

For information about costing methods, see the Inventory Control User Guide.