<< Click to Display Table of Contents >>

IN-L-I  Change Costing Method

Purpose of Program

Use this program to change from one costing method (Average, FIFO, LIFO or Standard) to another.  The costing method was originally established in SD-H  Inventory Defaults.  Once the cost method is set in SD-H it cannot be changed within that program; you must run this program instead to insure that appropriate files are adjusted properly for the change.

If you are changing from FIFO or LIFO to Average costing, the program deletes all the FIFO or LIFO cost buckets.

 

If you are changing from Average costing to FIFO or LIFO, the program creates a single beginning cost bucket consisting of the current on-hand quantity and the current average cost.  It also checks the item class file and requires that all inventory Locations within a item class have identical General Ledger asset accounts, because FIFO and LIFO costs are not maintained separately by Location.  If the accounts are not the same within a item class, you cannot run this program until you go to SM-C  Enter Item classes and change all the GL asset accounts accordingly.

If you are changing from any other method to Standard, the program revalues the inventory at Standard Cost, deletes any FIFO or LIFO buckets, generates a Price Change transaction as necessary and recalculates Book Value.  It does not make any GL Postings so you will need to make your own entry to reset the inventory value.

General Program Operation

You are first advised to get all other users out of the system before starting this program.  The program runs in single user mode only.

The four cost methods (Average, FIFO, LIFO, Standard) are presented in a window.  Use your arrow keys or click on the method you to which you wish to change.

You are then advised in to run SM-J-C  Reconcile Inventory On-Hand before running this program as a good precaution to make sure your current on-hand totals are correct.  You can exit the program and do so or you have the choice of continuing.

After processing is completed you will receive a message that indicates that the conversion is completed.