3.0 We would like to switch to using the FIFO method to value our inventory.

Modified on Fri, 24 Oct at 2:25 PM

If you are currently using the replacement cost method and would like to update your system to use the FIFO method, you will want to take the following steps in Softbase:

First, you will want to switch the warehouses to reflect the FIFO costs.

This is also done in the parts setup module under the Warehouses tab. For each warehouse, you will want to ensure you have checked the option to use FIFO and update.

Then, you want to create a FIFO cost record for all parts in your inventory. This is done under the Parts Setup module in the Setup tab. Click on the Correct FIFO tab, and then run the program for a warehouse. It will show you any discrepancies in the system, such as the part MSO15 below sowing an on hand of 14 but having no FIFO costs recorded.

Use the Correct button to create a FIFO record for each quantity in your system (or remove any excess FIFO records) and then repeat for all warehouses.

Once FIFO records are created and are consistent with the on hand values, you will want to switch the warehouse to reflect the FIFO costs.

This is also done in the parts setup module under the Warehouses tab. For each warehouse, you will want to ensure you have checked the option to use FIFO and update.

Once this is completed, your warehouses will be set to use the FIFO method for valuation and your FIFO records will be matched to reflect your inventory on hands.