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Calculating the Inventory FIFO Cost

You can calculate the inventory based on the First In First Out (FIFO) valuation. This process looks at the current stock of each inventory item and then goes backward through the receiving records until it reaches the level of the current stock for each item. It then calculates the cost of the inventory based on a weighted-average cost of received merchandise.

Run this process only once. If you run the process twice, you cannot restore the original cost valuation.

Figure 1-51 Calculating the Inventory FIFO Cost

1. On the toolbar, click Warehouse, click Inventory Valuations, and then click Calculate Inventory FIFO Values.
2. Select the locations to value the inventory, select the variables to include in the calculation from the following options, and then click Start.

   • Tax On Goods Received: Select this option to include item taxes.

   • Freight Charged On Goods Received: Select this option to include item freight charges.

3. After the process completes, run the Inventory Average/FIFO Cost Valuation Report for the FIFO Value, and then restore previous inventory cost valuations.

   See Running the Inventory Average/FIFO Cost Valuation Report and Restoring Previous Inventory Cost Valuation for instructions on generating the Inventory Average/FIFO Cost Valuation Report and restoring previous cost valuations.