LIFO/FIFO Inventory Costing and Advanced Receiving

NetSuite tracks inventory costing differently if you use or do not use the Advanced Receiving feature.

LIFO/FIFO Costing With Advanced Receiving

If you use Advanced Receiving, LIFO/FIFO costing occurs at the time of item receipt. Inventory costing is determined by the amounts entered on purchase orders.

The following transactions may affect inventory costing:

Create Invoice
Enter Cash Sale
Write Checks
Use Credit Cards
Enter Purchase Orders (determines inventory cost)
Item Receipt (determines inventory costing date)
Issue Credit Memo and Refund Cash Sale
- affects inventory costing the same way an item receipt does
- most recent value used for LIFO
- oldest value used for FIFO
Enter Vendor Credits
- most recent value used for LIFO
- oldest value used for FIFO
Adjust Inventory
- affect inventory costing the way purchases and sales do
- most recent value used for LIFO
- oldest value used for FIFO

LIFO/FIFO Costing Without Advanced Receiving

If you do not use Advanced Receiving, inventory costing occurs at time of bill entry. Inventory cost is determined by amounts entered on bills for inventory items. Inventory costing cannot be tracked or calculated until a bill is entered.

The following transactions may affect inventory costing:

Create Invoices
Enter Cash Sale
Write Checks
Use Credit Cards
Enter Bills
Issue Credit Memo and Refund Cash Sales
- affects inventory costing the same way a purchase does
- most recent value used for LIFO
- oldest value used for FIFO
Enter Vendor Credits
- most recent value used for LIFO
- oldest value used for FIFO
Adjust Inventory
- affects inventory costing the same way purchases and sales do
- most recent value used for LIFO
- oldest value used for FIFO

LIFO/FIFO Costing With Advanced Receiving

LIFO/FIFO Costing Without Advanced Receiving

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