Solved

Understanding FIFO inventory valuation

  • 2 September 2022
  • 3 replies
  • 354 views

Userlevel 2
Badge

Hi, upon checking the inventory transaction history, I have 100qty in with unit cost 133.69190. However, the next 12qty out becomes 133.69167. And the subsequent issue out unit cost becomes 133.69000. I thought if based on FIFO, the issue out cost should also be 133.69190, but value turns out to be different in the screenshot. Anyone can advise how the system calculates the 133.69167 and 133.69000 if my inventory valuation method is FIFO? Thanks alot!

 

icon

Best answer by Kandy Beatty 4 September 2022, 22:38

View original

3 replies

Badge +18

Hello @jechang 

Are the Warehouse Locations costed separately?  If not, Acumatica may assign the oldest cost in the warehouse, even if it’s in a different location.  I copied the help below; please see if this answers your question.

 

Userlevel 2
Badge

Hello @jechang 

Are the Warehouse Locations costed separately?  If not, Acumatica may assign the oldest cost in the warehouse, even if it’s in a different location.  I copied the help below; please see if this answers your question.

 

hi @laura01 , my settings for the warehouse locations are not costed separately. The oldest cost in the warehouse is actually 133.69190 for 100qty. but unsure why the subsequent issue out costing is 133.69167 and 133.69000. 

Userlevel 7
Badge +16

Hi @jechang 

What is the costing method of the Kit Assembly? It appears that is being factored into the costing of the item. 

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2024  Acumatica, Inc. All rights reserved