FIFO Cost Calculation

[iwells]

Hi,

I'm struggling to understand a FIFO cost calculation that's been presented to me and I'm wondering if anyone can provide insight as there may be something I don't understand related to shipment returns (SRT)?

See attached for data.

The question is why if the first shipment return was $8,726.83 does the system expense the first used item at $7,372.28? I'm really lost on the calculation period because it doesn't make any sense to me.

Thanks!

Ian

 

[iwells]

 

[ettienne]

Print the transaction history report.

Sage 300 ERP Certified Consultant

http://www.adssglobal.net

 

[iwells]

 

[iwells]

Here's the report you asked for ... sorry had some info in the other files i had to remove and edit the post.

 

[ettienne]

Now analyze the report, keep track of the FIFO buckets.

Sage 300 ERP Certified Consultant

http://www.adssglobal.net

 

[iwells]

As at 11-5-2013 inventory is 0 for this item, then an item is returned at 8,726.83, then 3 more items are received at 20,085.00 less a receipt adjustment of -1,446.84
, then 2 more items are returned at 13,390.00, then a shipment of -7,372.28. Why isn't the shipment 8,726.83 which was the first inventory populating transaction after inventory was 0? 8,726.8 -1,446.84 = 7,279.99 so the receipt adjustment still doesn't factor in to being applied to that first item in inventory. I've tried manipulating the numbers and I don't see it.

 

[ettienne]

You have to analyze the FIFO buckets and not lump the transactions together.
I don't do this unless I'm paid
In other words I don't like doing it.

Sage 300 ERP Certified Consultant

http://www.adssglobal.net

 

[iwells]

Anyone else have any insight?

I fail to see how the transaction should be for anything other than 8,726.83 since that's the first transaction AFTER the quantity had reset to 0. There's only 5 transactions after 11-5-2013 when the quantity had been reset to 0.

 

[Jay Converse]

Analyze ICHIST

 

[iwells]

ettienne - i didn't fully understand what you meant at first but now i see why you wouldn't do that unless paid! the issue comes from the offset bucket being populated, cleared, then repopulated, then cleared, then repeat ... by a few receipt adjustments and a ton of shipments and shipment returns.

is there anywhere in IC that stores the historical ICCOST and offset bucket changes?

 

[Jay Converse]

ICHIST

 

[ettienne]

The offset will catch you every time - anything in the offset bucket is allocated to the next transaction. So you will constantly see random costs allocated to transactions.

Sage 300 ERP Certified Consultant

http://www.adssglobal.net

 

[iwells]

It was just that the offset was from so long ago and there are soooo many individual shipments and returns that are carried forward for so long.