To run the LIFO Inventory Valuation Report:The LIFO Inventory Valuation Report calculates the value of your inventory as of a specified date and compares that value to what it would be if the same inventory were valued at a previous cost. The report is used primarily for tax purposes. The report is typically run at a fiscal or calendar year end, but it can be run as often as needed, such as quarterly, depending on your business needs.
Before running the report, you need to update the Product LIFO file.
This report takes the on-hand quantity based on the as-of-date indicated and extends it using this year's cost and either the last or base year's cost.
Dividing this year's cost by the last or base year's cost produces a LIFO Index. The index is the ratio of change in the cost. The Index is 1 if the price has not changed.
To run the LIFO Inventory Valuation Report:
From the Reprts > End of Month Reports #2 menu, select LIFO Inventory Valuation Report to display the LIFO Inventory Valuation Report screen.
In the Br/Tr/All field, enter the branch or territory for which to run the valuation. To run the report for all branches and territories, enter ALL.
The system populates the As of Date field with the date of the most recent LIFO update in view-only mode. Typically, this is the fiscal year end.
In the Pool field, if LIFO eligibility pools are defined, enter the name of the pool by which to limit the report.
To produce a report for all products not assigned to a pool, enter None. If left blank, the system includes all pools in the report.
Note: The system populates the Cost Basis field with the costing method chosen when you elected to use the LIFO valuation method.
In the Format field, specify one of the following types of products to include in the report:
Full Inventory – Selects every product that has a non-zero quantity. Products with a zero quantity produce a price extension of zero, and therefore are never included in the LIFO Report.
Extension of Like Items – Selects only products that are not new this year. Any product that was first bought this year does not appear on the Extension of Like Items Report.
Extension Less Non-Purchased – Selects products that were both not new this year and were purchased this year. This means the product has a purchase date later than the last year's As of Date. The most recent purchase date that is saved when the update is run indicates whether the product has been purchased this year.
In the Summary/Detail field, enter one of the following to determine the report level of detail:
Summary – Displays product count, extensions, indexes, branches, lines, pools, grand totals.
Detail – Displays all product information, sorted by line within pool within branch.
In the Negative Qtys field, specify whether to include negative quantities on the report or run the report for negative quantities only.
Note: Use the Only option on a full inventory to determine which products are showing a negative quantity at the end of the year. If your company performed a physical inventory and made adjustments dated after the fiscal year end, a product may display a negative quantity. To correct this problem, change the adjustment dates to the fiscal year-end date and re-run the LIFO Updating program.
The system populates the Report Method field with one of the following reporting methods:
BASE-YEAR – Compares current year pricing with pricing for a designated beginning year.
LINK-CHAIN – Compares current year pricing with previous year pricing.
This method is determined during LIFO setup and cannot be changed.
In the Cost Branch field, if one branch purchases product for all branches, specify the branch whose costs determine the costs for all other branches. Unless pricing policy changes, do not change the entry in this field.
The system populates the Last Posted field with the date when the LIFO Update program was last run.
In the Select By field, select whether to run the report for only buy lines or only price lines.
Leave this field blank to run the report for both buy lines and price lines.
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