Change valuation FIFO perpetual to Average Perpetual

(0) Share

Report

Posted on by Community Member Microsoft Employee

Hello,

We are currently using FIFO Perpetual for SOP and POP. We need to change some the valuation method to Average perpetual.

I understand the steps to do this but, what implications would it have on the existing items in stock and on the financials? Does it recalculate the cost on existing items in stock?

Thanks

*This post is locked for comments

All responses (2)

Answers (0)

L Vail 65,271 on at

Like (0)

Report

Re: Change valuation FIFO perpetual to Average Perpetual

Jay,

I'm with rlmcvicar - if you understand the steps, then you know you cannot have any transaction history for the items. That said, there wouldn't be any items to 'recalculate the cost'. What steps would you execute in order to change the valuation method?

Also, there are Federal Income Tax ramifications, but that's beyond the scope of this forum. (It's called a change in accounting method - look up the instructions for completing a Form 3115).
rlmcvicar 380 on at

Like (0)

Report

Re: Change valuation FIFO perpetual to Average Perpetual

Jay, can you help a guy out? you say you understand the steps to change FIFO to Average Perpetual.