How to be the LIFO of the party

Yahoo Archive
1
Mark,

Our first fiscal year close will be 4/30 but our plan is to do exactly what you describe. We have been doing the same (and found it extremely efficient) on our legacy system for 9 years.

No sense overcomplicating things as LIFO is purely a once per year IRS asset valuation issue - not the premise for day to day financial input to management of the business.

Rob Brown

Mark Wonsil <mark_wonsil@...> wrote:
Just wondering what other companies have been doing for LIFO valuations of
their inventory... In our previous system, we kept a file of the first price
paid for inventory and then would update it (manually) when the stock went to
zero. It wasn't exact but good enough for government work...

So how are others doing it in Vantage?

Mark W.






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2
Just wondering what other companies have been doing for LIFO valuations of
their inventory... In our previous system, we kept a file of the first price
paid for inventory and then would update it (manually) when the stock went to
zero. It wasn't exact but good enough for government work...

So how are others doing it in Vantage?

Mark W.
3
I too use a less than exact, but good enough, method for a report that derives an index of material price changes over the past year. What we call the LIFO index.

This is in RB but I find the last earliest purchase in the year (or look back 3 months into prior year) to get a "first price" and then the last purchase of the year to get the latest price and derive the index from that. If the first price date is too far into the year I note it on the report but go ahead and include it. Not being a bean counter I am not real clear on what it is used for but the auditors have blessed the methodology. Especially because the materials that we use most (well over 80%) have so many transactions it is gauranteed there is a purchase in the last week of the prior year and one in the last week of this year (or at year end the year just ended and the year before that). This volume skews the overall total so much the odd one-off materials don't affect it.

I suspect the same basic idea could be used for actual valuation calculations without needing to manually update "first" price. If I recall the report used an secondary aliased table to get the transaction with the minimum date within some range to qualify as the "first" purchase. It might be messy but this date could also be the first date after any zero qty event. Maybe. Just brainstorming there.

-Todd C.

________________________________
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Mark Wonsil
Sent: Friday, January 25, 2008 9:47 AM
To: vantage@yahoogroups.com
Subject: [Vantage] How to be the LIFO of the party...


Just wondering what other companies have been doing for LIFO valuations of
their inventory... In our previous system, we kept a file of the first price
paid for inventory and then would update it (manually) when the stock went to
zero. It wasn't exact but good enough for government work...

So how are others doing it in Vantage?

Mark W.





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4
> I suspect the same basic idea could be used for actual valuation
> calculations without needing to manually update "first" price. If I recall
> the report used an secondary aliased table to get the transaction with the
> minimum date within some range to qualify as the "first" purchase. It might
> be messy but this date could also be the first date after any zero qty
event.
> Maybe. Just brainstorming there.

Interesting. I was thinking about creating a Cost Group called LIFO and
writing a .Net application to update the "first paid" records. This would
allow us to then do roll-ups on the LIFO costs to get them on Make parts. I
created an As Of inventory report in Access, so I would take the end of the
year inventory (after the physical) and extend it by the current PartCost and
the CostPart records for the report. The hard part is maintaining the LIFO
cost group and to make sure that nobody tries to post it!

Good thoughts.

Mark W.