Changing Costing Methodes from Last to FIFO

Good Afternoon All,
I am a new Cost Accounting that the company I work uses Epicor 9.04.507A and are planning on Upgrading to the 10 soon.
With that said they are not nearly using Epicor in the way that it is meant. We are a manufacturer and I am shocked to see that they used Last Cost for their costing method, we have since decided to go with FIFO.

No they are not running a true perpetual inventory. So with them not running a perpetual inventory and not worrying about the G/L matching up (Don’t ask). is there an easy way to change the costing method? on top of that will it just use the last purchase price as the current layer of costing until more purchases are made.

I know the game plan in 10 is to run a full perpetual inventory with the proper mapping to G/L codes and trying to get to cycle counting.

Thanks for any and all advice


The limiting factor on changing a part’s cost method is inventory… if the inventory quantity balance of a part is not zero, you can’t change its cost method.

That said, sometime when you have a weekend available and nothing else to do, and you’ve planned it properly, you can adjust out all your inventory, set your cost values as you see fit, and then adjust your inventory back in (which will come in at the “new” cost)… realizing, of course, your auditors will have a heart attack unless they’ve ALSO been prepared properly.

But that scenario is not so uncommon, most of us have dealt with it numerous times.

Thank you Ernie,
I have done it before from Actual to Standard but that was in a different ERP system. Where we was able to zero out the inventory change all the costs and mass upload the qty back into inventory. This is what I was hoping we could do? Manually 29K part numbers would take forever.

An extra note on Ernie’s post…

Use the same Reason Code for the Qty adjustments to return QOH values to what they are, as were used to zero them out. This will make all the GL trans from the QTY-ADJ’s to reverse out the original.

Michael - The DMT (Data Migration Tool) Utility is worth it’s weight in gold.

Just last year we switched from LAST to AVG costing. Only had about 1,000 parts, but DMT made it a breeze.

With the DMT you can do that… but with 29k parts you’re still looking at a pretty long weekend. As before, first you need to zero out your quantities, then change your method, then replace the quantities. This is the way it’s usually done. And @ckrusen is right… using the same Reason Code for both sides of the quantity adjustment makes your GL cleaner.