Inventory costing method change

srle

Hi,

Our customer has decided to change Inventory costing method at the end of fiscal year. They wish their inventory costing method to be FIFO and SPECIFIC (tracking specific for serial number) instead of Standard Cost (used for manufactured items) and Average Cost (used for rest of inventory). Although we have the general idea how to solve it - that is to decrease all inventory to zero, change Costing Method on every item to FIFO or specific depending of specific tracking, and then return all inventory through Item Journal – we suppose that could be a tricky operation, or even more, a completely wrong approach to this problem.

We would be very grateful if you could help us on this matter.

ara3n

Hello.
This subject and question has been asked and discussed several time.

http://www.mibuso.com/forum/search.php?mode=results


One more thing that you need to do is make sure there aren't any particially received not invoiced PO. as well as run adjust cost routine and post it to GL.

David_Singleton

srle wrote:

Hi,

Our customer has decided to change Inventory costing method at the end of fiscal year. They wish their inventory costing method to be FIFO and SPECIFIC (tracking specific for serial number) instead of Standard Cost (used for manufactured items) and Average Cost (used for rest of inventory). Although we have the general idea how to solve it - that is to decrease all inventory to zero, change Costing Method on every item to FIFO or specific depending of specific tracking, and then return all inventory through Item Journal – we suppose that could be a tricky operation, or even more, a completely wrong approach to this problem.

We would be very grateful if you could help us on this matter.

Your general aproach is correct. You could also do this by programatically changing soe paramaters, but that is not as safe as what you are suggesting.

So be aware that if you have outstanding Purchase invoices, then these must be posted. Basically all costs need to be in the system. Then run the adjustment routines. Make sure all the items are now stable with correct costs. Run a physical, to get the currnt quantities to zero, and then reintroduce the items as required. Now get your new costs and post a second physical after changing costing method.

madhankumar

Hi,

Our customer has decided to change Inventory costing method at the end of fiscal year. They wish their inventory costing method to be FIFO and SPECIFIC (tracking specific for serial number) instead of Standard Cost (used for manufactured items) and Average Cost (used for rest of inventory). Although we have the general idea how to solve it - that is to decrease all inventory to zero, change Costing Method on every item to FIFO or specific depending of specific tracking, and then return all inventory through Item Journal – we suppose that could be a tricky operation, or even more, a completely wrong approach to this problem.

We would be very grateful if you could help us on this matter.