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