valuate the inventory from Average to FIFO

ramesh.ayn

HEllo,

one of my client having Average costing method for some items since long time.
now they want to convert to FIFO.
My Query is how to valuate the inventory available on FIFO?

we are planinng to take a new Item instead of old and valuate the old item's inventory as per FIFO, so that i can do the Positive adjustment with the new Item code.

please suggest me the best way to valuate the old inventory as per FIFO.

regards,
Ramesh

gerrykistler

First make sure you do not have any open negative entries by checking in the Item Application Worksheet. Then do a report of the open positive entries for the item. The costs on these entries weighted on the remaining quantity will give you your opening FIFO layers.

ramesh.ayn

gerrykistler,

Thanks for your prompt reply

we are having more Open entries of Transfer entries than purchases.
these transfers are built with Average cost. so how can i concder this cost as FIFO cost?

gerrykistler

You would have to use the Item Application entries to got through the transfers back to the original positive entry and get the cost form there.

ramesh.ayn

Thanks for the suggession , i am working on the same idea.