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We have a client who has been using GP since 2007. They want to change the valuation method from FIFO Perpetual to Average Perpetual. How will GP treat all the existing inventory after this change is made? Let's say I have 100 widget's in stock that came is as FIFO at $1.00 and I cut a PO for another 100 after making the change but these now come in at $0.50 and I sell 50 of them. Will the cost on the sale per $1.00 per widget or $0.75. What if I were to tell 150 of them. Will 100 go out at $100 and then the other 50 at $0.75. I need to explain the ramifications of this change to existing inventory before they push the button to change.
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I have the same question (0)Richard, I would suggest doing it in a test company first, although I am sure you already have that planned. I shy away from average as it creates many trx/recalculations which have been confusing (my experience is from users from 10 yrs ago that were using when GP 9 came out with the enhancements). I have found this article handy when dealing with it. I did a Google to find it, as I was not sure an attachment would work on community. Anyway, my guess to the question is I would bet it will recalculate the average based on all those layers. Good luck!
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Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com
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