First In First Out (FIFO) Cost Tracking

First In First Out (FIFO) cost tracking is used to accurately track the cost of goods sold on a first-in, first-out basis. If you use FIFO cost tracking, the program tracks all incoming and outgoing inventory and its cost. Therefore, a cost must be entered for all inventory items. The program prompts the user to enter a cost at the time the inventory is received or adjusted if it does not have a cost on file.

 

This article explains how to set up FIFO cost tracking, check an items FIFO status, and print reports.

System Parameter

To enable FIFO cost tracking in the Order Manager, set the TrackInventoryFIFO system parameter (in the Program group) to True.

Note: Setting the TrackInventoryFIFO system parameter to True is the equivalent checking the Track your Cost of Goods on a FIFO basis box on the FIFO Cost-of-Goods Tracking page of the Setup Wizard.

 

FIFO_sys_parameter.JPG

 

 

Set up Initial Costs

Data can be initialized one of two ways, from existing inventory data or from an external data source. Run FIFO initialization at any time to re-synchronize the FIFO data with existing inventory.

 

To use the FIFO feature:

  1. Go to the Main Menu> Maintenance Menu> Inventory & Suppliers tab> Initialize Inventory FIFO Data.

  1. On the Initialize Inventory FIFO Data screen, select one of two options:

    1. Click From current Quantity on Hand and Supplier Costs, and then click the Initialize Data button.

image367.gif

 

    1. Click the From data imported from an Access database. Browse to find the database and then select the table that contains the inventory data you wish to import from the drop down list. Select the fields in the external table that correspond to the Order Manager fields from the drop down lists. Refer to the sample records in the window below if necessary. Click Begin Import.

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Check Status

Check the FIFO status of any item at any time by going to the View Inventory screen, navigating to the appropriate item record, and clicking the FIFO Status button.

 

FIFO_button.JPG

 

 

Reporting

To get detailed FIFO information in versions 5.612 and lower, two reports are available: FIFO Inventory Details by Supplier and FIFO Inventory Value by Supplier. To access the reports, click on Print Reports on the Main Menu.

In versions 5.8 and greater, FIFO information is available in the reports, Inventory Values by Supplier and Inventory - New.  

 

See Also

Inventory & Suppliers Tab

 

Modified 6/1/10