About Adjustments to Items that Use FIFO or LIFO Costing

For items that use the FIFO or LIFO costing method, Inventory Control keeps track of the order in which units arrive at a location by storing each item's receipt date, receipt number, quantity, and extended cost in individual "buckets."

When adjusting a detail for an item that uses one of these costing methods, you specify one of the following bucket types:

• Offset bucket. If you select Offset Bucket, the adjustment affects only the offset bucket.

  Note: For each item at each location, there is an "offset" bucket that Inventory Control uses for special cases, such as when you ship more items than there are in stock from a location. (Inventory Control must be set up to allow negative inventory levels in order to ship negative quantities.) Offset buckets contain a quantity and a cost, but do not contain a date or receipt number, like other buckets.

• Specific Receipt. Specify this bucket type to specify a receipt number to select the cost and quantity information for a particular receipt.

  The number of the receipt from which a bucket is created is contained in the bucket.

• Prorate. Select Prorate to have the program prorate the adjustment across all buckets (including the offset bucket) for the item at the location.

  The number of units and the amount of cost prorated to each bucket is based on the quantity in each bucket.

  The program determines the particular buckets to adjust consistent with the costing method (FIFO or LIFO).

Last published: 4/8/2016