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Valuing Goods Using the FIFO Method

Vrednotenje blaga po FIFO metodi

Valuing Goods Using the LIFO Method

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To adequately value goods using the FIFO method, you must do the following:

1. Warehouse - First select the warehouse where goods will be valued using the FIFO 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 FIFO 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 FIFO method in order to ensure that the warehouse card is correctly reported.

000001.gif When you create a document for issuing goods, the average price will be displayed until you recalculate prices. A recalculation of valuation prices (see Refresh Stock) MUST be carried out at least before automatically posting material consumption when using the FIFO 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 FIFO principle also apply to the creation of credit notes. See:

General Functions:

Related Topics:
 

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