About Methods to Relieve Inventory

Choose the method you want the system to use to relieve inventory as you post entries throughout the month.

Valuation Method

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

Cost Method

The cost method (Average Cost, Last Cost, and Standard Cost) identifies at what level inventory is reduced when materials are sold, transferred, or produced.

Note: You may override the Cost Method defined for a company by location in the IN Locations form or by location/category in the IN Location Category Override form.