Question: Our Company owns Sage 100 ERP (formerly Sage MAS90). We are considering changing the valuation method of several inventory items from Average Cost to FIFO. How do we do this?
Answer: Luckily, there is a utility that accomplishes this change. It is Inventory Item Valuation Selection and Maintenance. However, other steps are required are make the change from Average Cost to FIFO.
Step 1: First, we recommended the Items that are being changed are adjusted to a zero inventory balance. This can be done using Inventory Management > Main > Transaction Entry. Using the Adjustment Option set the quantity to reduce the quantity on hand to zero, accept and post the journal.
Step 2: Using the Utility go to Inventory Management > Setup > Inventory Management Utilities and Select the Item you wish to change using Item Valuation Change Selection: Proceeded and Update the Register.
Step 3: Set the Inventory Quantity back to the original amount using Inventory Management > Main > Transaction Entry using an Adjustment: For FIFO set the FIFO date for distribution, run the Register and update.
This question was submitted to Mike Renner, Partner WAC Consulting, Owner at Computer Accounting Services and appears on Oasis Solutions Group's Partner ERP VAR's blog.
If you have questions about your Sage 100 ERP, Sage 500, Sage 50, or other ERP, CRM or HRMS software please contact us for help!
