Change "Costing Method"

tro#1

All,

I have read several postings about changing the Costing Method. But my case is a little bit different so I would be glad if you could also tell me about your opinion on following:

Version 4 SP1
Right now all items do have costing method = Standard.
We need to change it to FiFo because of company decision. If we create new items we would loose sales history. That is why I would suggest doing those steps:

1) Remove all quantity on hand (Zero out physical inventory journal)
2) Run both reports: adjust cost and post to G/L (Allow posting date will be the first of the current months)
3) Make sure that all quantities and values are zero
4) Change the Costing Method from Standard to Fifo (comment out the check if item ledger entries exist)
5) Bring back stock in with correct quantities and unit costs (Unit costs get calculated in Excel following the FiFo rules)
6) run both reports: adjust cost and post to G/L again (Allow posting date will be the first of the current months)

The only concern I have because of this is that we will have troubles with adjust cost later.

What is your opinion on it?
Thank you
Julia

cernst

I think you've forgott one step between step 1 and 2. You should invoice all receipts so that there are no excpected costs.

To change costing method between standard and FIFO is no problem using the steps you described and with the change above. Standard and FIFO applies item entries the same way. I've done this several times my self and it works just fine.

ara3n

Are you using nav manufacturing?

tro#1

No, no manufacturing.
Why did you ask?

AdamRoue

WIP

austin

hi experts,


If a firm using manufacturing then what steps involve to change costing method ?



thanks and regards

austin

experts throw some information...................