Item Valuation Change Methods Home | FAQs & Troubleshooting

 

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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

 

 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