Valuation by LIFO method is no longer used according to currently valid
Slovene Accounting Standards.
To adequately value goods using the LIFO method, you must do the following:
1. Warehouse - First select the warehouse where
goods will be valued using the LIFO method
2. Receiving- now you're ready to create receiving
documents for these goods
3. Issue - Now you will issue the goods. Because
average prices will be displayed until you calculate prices when creating a
document for the issue, a recalculation of valuation prices (Refresh
Stock) MUST be carried out at least before automatically
posting material consumption when using the LIFO method in order to ensure
that the warehouse card is correctly reported.
4. Refresh Stock - With this valuation method,
it is crucial that you used the Refresh Stock option, that is, the Re-calculate
Valuation Prices option, because the posting of material consumption will be
incorrect if you do not. This is because the average price is used as the valuation
price before prices are recalculated. A recalculation of valuation prices (see
Refresh Stock) MUST be carried out at least before
automatically posting material consumption when
using the LIFO method in order to ensure that the warehouse card is correctly
reported.
The special considerations that must be taken when refreshing stock and using
the LIFO principle also apply to the creation of credit notes. See:
General Functions:
Related Topics: