1,415
We are using FIFO Perpetual method for GP inventory valuation.
1. Can you overship & invoice inventory under FIFO Perpetual without problems with inventory costing?
2. If yes, once you receive inventory, how would GP recalculate Cost of Goods Sold and inventory value?
3. If we overship inventory, what would this do to GP system performance (would it slow it down)?
*This post is locked for comments
Thank you very much for excellent and very clear answer, Tim!
Hello Barbara, everyone on here will tell you not to do this including me but you can if you wish, it just will be less intuitive than you would want and it will be hard to manage margin dollars accurately. We've all done this at one point or at least seen it done, often when you want to post sales at the end of a period but receipts have not yet been checked in and posted.
If you enter a qty on a Sales Invoice that creates a shortage the shortage window will pop up and you can choose to override (assuming you allow overrides) and invoice. The COGS value for the missing units will use the current cost from the item card and the shortage quantity will push the on hand negative. When you process the receipt the qty will increment back to positive (assuming enough) but the cost may or may not be the cost you sold the unit as. Here's where your margin reporting will be incorrect and your period COGS may also be incorrect.
So...
1) Yes but no guarantee of 'without problems'.
2) No COGS recalculation will happen, you need to GL the change (or do a return and re-invoice).
3) No performance issues.
Best
Tim
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
291,280
Super User 2024 Season 2
#2
Martin Dráb
230,214
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (