Hi,
Looking for your insights into the the following questions around inventory valuation methods.
- Average Cost Calculation:
- Is the average cost recalculation triggered only on a purchase?
- If a purchase is back dated after a sale has already been posted does the system recalculate the cost on that sale to reflect the true average cost?
- FIFO Cost Calculation
- If a purchase is back dated after a sale has already been posted does the system recalculate the cost on that sale to reflect the proper FIFO cost?
- Inventory Adjustments: Under FIFO do all inventory adjustments need to be matched to a prior purchase?
- Negative Inventory:
- Average Cost: If inventory sold into a negative position and purchase back dated will system adjust costs to accurate average cost or just use the last cost for sales made?
- FIFO: If inventory sold into a negative position and purchase back dated will system adjust costs to accurate FIFO cost or just use the last cost for the sales made?
Thanks,
Hari
Best answer by Kandy Beatty
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