Inventory Control keeps track of the order in which units arrive at a location by storing their receipt date, receipt number, quantity, and extended cost in individual "buckets." The program calculates the cost of units shipped from the costs stored in the buckets.
- For FIFO, units from the bucket having the oldest receipt date are shipped first.
- For LIFO, units from the bucket having the most recent receipt date are shipped first.
There is no limit to the number of buckets Inventory Control can use.
When you assemble units of a master item the program removes each of the components from inventory at the location you specify, and costs them according to their item costing methods. The component costs are added to the fixed cost and variable cost of the master item.
Inventory Control then creates a bucket at the same location and stores the assembly number in the bucket. If, later, you want to adjust the item quantity or cost in a specific bucket created by an assembly, you can identify the bucket by the assembly number, which you will find on the Assemblies Posting Journal.
Before posting assemblies, click the Verify Quantities button to display a list of component items that have insufficient quantities in stock to assemble the quantity of master items you specified.
If the Allow Items At All Locations option is not selected on the I/C Options screen, the Verify Quantities button also displays a list of component items not stocked at the location you specified.