When you create a document for issuing goods, the average price will be displayed until you recalculate prices. A recalculation of valuation prices 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.

After a recalculation of prices, the warehouse card will also show the FIFO prices. Because the price for the first 50 and last ten pieces shown in this example is different, the average of both FIFO prices is displayed in the combined line.

50 x 12 EUR + 10 x 10 SIT= 700 EUR, 700 / 60 = 11,67

The warehouse card now shows the issue in this example with the correct value, 700 EUR...

Due to the rounding of the valuation price, this CANNOT be the product of 11.67 x 60, but the correct FIFO value. If it were not, you could not  consume the stock correctly in terms of value.

Warehouse Card:

 With this type of valuation, the dates of the receipt and purchase of goods are crucial, as information about purchases and sales must be entered in the correct order. If you've changed the date of one of the documents in the accounting period, or have inserted it and changed the purchase value of goods, you MUST perform a recalculation of valuation prices (see Refreshing Stock)  at least before automatically posting material consumption.

A recalculation of valuation prices is done first by arranging the documents in chronological order by date of purchase/sale, and then in the following order: Receiving Transfer Issue   Within each of these categories, movements are arranged chronologically, that is, by date and time of line entry.

The special considerations that must be taken when refreshing stock and using the LIFO principle also apply to the creation of credit notes. See:

• Credit Notes to Suppliers - Reversing a Receiving Document
• Credit Notes to Customers - Reversing Issue Documents

General Functions:

• Stock

Related Topics:

• Warehouse - FIFO Valuation Method
• Receiving
• Issue
• Credit Notes to Suppliers - Reversing a Receiving Document
• Credit Notes to Customers - Reversing Issue Documents