Item Valuation Change Methods

 

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The table below illustrates which cost is used when changing an item's existing valuation method to a new valuation method. To use this table, find the old valuation method listed on the left, and match it with the new valuation method listed across the table. For example, if you are changing an item's valuation method from FIFO to Lot, the costing method used is method 3.

Note Inventory items that have an existing quantity (positive or negative) in a warehouse cannot be changed to a valuation of lot or serial.

 

 

 

NEW

 

 

 

 

 

 

Valuation
Method

Standard Cost

Average Cost

 

FIFO

 

LIFO

Lot Number

Serial Number

 

Standard Cost

N/A

AVG

AVG

AVG

3

3

 

Average Cost

STD

N/A

AVG

AVG

3

3

O
L
D

FIFO

STD

AVG

N/A

2

3

3

 

LIFO

STD

AVG

2

N/A

3

3

 

Lot Number

STD

AVG

1

1

N/A

3

 

Serial Number

STD

AVG

1

1

3

N/A

 

Expand/Collapse item  How to read the valuation method table codes

 

1

 

A new tier is created for each receipt date with the unit cost for that warehouse.

2

The unit cost remains the same for each tier. Only the chronological order is reversed.

3

Because the quantity on hand must be zero to change the valuation method to lot or serial, no changes are made to the item other than the valuation method for future transactions. Any existing old tiers are removed.

STD

The standard cost in the Item file is used.

AVG

The average cost of the item for each warehouse is used.

 

For more information, see:

Item Valuation Change Selection

Hierarchy of Costs