About Methods to Relieve Inventory
Choose the method you want the system to use to relieve inventory as you post entries throughout the month.
The valuation method is used for monthly reconciliation. With it you can capture beginning, ending, and summarized transaction activity by month and/or to make adjusting entries to correct inventory values when “ins” and “outs” are not posted in sequence.
Available valuation methods:
0 - As Posted
1 - Average Cost
2 - FIFO (First In, First Out)
3 - LIFO (Last In, First Out)
4 - Standard Cost
The cost method (Average Cost, Last Cost, and Standard Cost) identifies at what level inventory is reduced when materials are sold, transferred, or produced.