FIFO costing does not working in case LOT functionality is used?

DarshanNAV

Item Master: Item A
Item tracking for lot is selected and at warehouse level as well.
FIFO Method of costing

Inventory Setup:
Automatic cost posting: Yes
Expected Cost posting: Yes
Automatic Cost Adjustment: Always
Average Cost Calc. Type: Item & Location & Variant
Scenario
Step 1: Purchase on 01/07/16 of Item A, qty 10 PCS, unit cost as 1000/- and lot = LOT1, Location = MUMBAI.
Item Ledger Entry:
Cost (Actual) = 10,000/-
Step 2: Purchase on 02/07/16 of Item A, qty 10 PCS, unit cost as 2000/- and lot = LOT1, Location = MUMBAI.
Item Ledger Entry:
Cost (Actual) = 20,000/-
Step 3: Transfer from MUMBAI location to GURGAON location on 05/07/16 of Item A, qty 10 PCS, lot = LOT2.
Item Ledger Entry:
Cost (Actual) = 20,000/-
Step 4: Transfer from MUMBAI location to GURGAON location on 06/07/16 of Item A, qty 10 PCS, lot = LOT2.
Item Ledger Entry:
Cost (Actual) = 10,000/-
Step 5: Selling on 10/07/16 of Item A, qty 5 PCS and lot = LOT1, Location = GURGAON.
Item Ledger Entry:
Cost (Actual) = -5,000/-
Step 6: Selling on 10/07/16 of Item A, qty 4 PCS and lot = LOT2, Location = GURGAON.
Item Ledger Entry:
Cost (Actual) = -8,000/-

In this case FIFO costing is not working but instead it is specific.

Is this correct?.

Thanks,

Darshan

Kowa

It is FIFO, but only within the same lot, which enables a more accurate calculation of the item cost.

In Codeunit 22, where the application between the item ledger entries takes place, you can find these lines of code which are responsible for this:

IF ItemTrackingCode."Lot Specific Tracking" THEN
ItemLedgEntry2.SETRANGE("Lot No.",ItemLedgEntry."Lot No.");

Kowa

It is FIFO, but only within the same lot, which enables a more accurate calculation of the item cost.

In Codeunit 22, where the application between the item ledger entries takes place, you can find these lines of code which are responsible for this:

IF ItemTrackingCode."Lot Specific Tracking" THEN
ItemLedgEntry2.SETRANGE("Lot No.",ItemLedgEntry."Lot No.");

DarshanNAV

Thanks Kowa