This Technical Note describes how LIFO/FIFO values may be evaluated. There is no direct accounting for the Cost of Sales on a LIFO/FIFO basis, CommerceExpert/WebClerk accounts for the Cost of Sales on a weighted average basis.
You are familiar with how LIFO/FIFO relate to inventory values. By knowing the Weighted Average Value of the beginning and inventory and the LIFO/FIFO value at the beginning and ending of a month, an adjustment may be added to the General Ledger to account for the timing of the Cost of Sales.
LIFO/FIFO are two ways of calculating the value of your inventory.
1. LIFO bases the value of inventory on a last in, first out basis
2. FIFO bases the value of inventory on a last in, first out basis
1. Each time an Item is inshipped an "InvStack" record is created noting the quantity and cost of the inshipped Item.
2. Call up the Items you wish to evaluated.
3. At the bottom of the Items Output layout is a button which will perform the evaluation based on LIFO/FIFO.
4. Clicking this button will cause the" InvStack" records to be sorted and the "InvStack" records in be adjusted to trim their available quantities to the quantity noted on the "Item" record.
5. Reports can then be printed accumulating the inventory values.