Dynamics Community Forum Thread Details

"Testing" Inventory Valuation Method Change

Hi:

In a test company, we have conducted a valuation method change from FIFO Periodic to FIFO Perpetual.

I know that the Purchase Receipts Inquiry window and its report is the best way to determine true inventory valuation layer cost.

Would the best way to determine if the "Cost" field is correct be to review this Cost for both purchase receivings and sales invoicing?

Thanks!

John

Categories:

Microsoft Dynamics GP

Hi John,

So with Periodic valuation the cost that comes in is actual regardless and updates the current cost with the last actual cost that was brought in and it goes out at standard cost. And when I look at the layers in inventory they are all at actual in the IV10200 table when my inventory item is at Standard cost (FIFO periodic). So really the current cost should be the last actual cost that came in and you shouldn't have to adjust it. But if you want to confirm you could look at the items incoming receipts that should give you a good idea. That is the IV10200 table. However, regardless, once you move to Perpetual, the system will start to automatically pull the layers Actual cost (unit cost) when those layers are sold so you shouldn't have to worry about that. As far as the actual cost or current cost on the Item card, the system will automatically update that as well when transactions are posted.

I just walked through setting up a periodic item, posting a whole bunch of new transactions with different dates and values to see what the tables would show and how it would update the current cost field and then did a valuation method change and I didn't have to adjust my current cost. It was the last actual receipt cost that came in when it was periodic. So it was actual regardless.

Hope this helps.

Warmest Regards,

Angela Ebensteiner

Quick Links

Leaderboard