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Hi All,
We are using FIFO perpetual for inventory valuation.
My question is when a transaction causes inventory to go negative (i.e. a sale or consumption of a raw material), what cost does GP use?
We have multiple sites where inventory is received if that factors in.
Thanks so much for your input.
Hi rtcorrea,
Manufacturing will not impact how the costs are determined when you do a transaction that drive inventory negative for your raw materials. Manufacturing will create inventory adjustments and those adjustments will be treated the same as an inventory adjustment. You will get a line in the IV10200 with only a qtysold and the current cost is used, when inventory is brought in to cover the negative amount a cost adjustment will be created to update that inventory adjustment to the correct cost.
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