{"id":3133,"date":"2015-11-25T22:06:47","date_gmt":"2015-11-26T03:06:47","guid":{"rendered":"https:\/\/www.inflowinventory.com\/support\/article\/3133\/i-switched-to-fifolifo-costing-but-now-all-my-costs-are-incorrect-what-do-i-do\/"},"modified":"2024-06-20T14:49:16","modified_gmt":"2024-06-20T18:49:16","slug":"i-switched-to-fifolifo-costing-but-now-all-my-costs-are-incorrect-what-do-i-do","status":"publish","type":"post","link":"https:\/\/onpremise.inflowinventory.com\/support\/article\/98077358\/i-switched-to-fifolifo-costing-but-now-all-my-costs-are-incorrect-what-do-i-do\/","title":{"rendered":"I switched to FIFO\/LIFO costing but now all my costs are incorrect. What do I do?"},"content":{"rendered":"

inFlow On-Premise’s First-in, First-Out \/ Last-in, First-Out (FIFO\/LIFO) costing method calculates your cost strictly through purchase orders. The steps to correct your costing depend on whether or not you already have purchase and sales orders in the system.<\/p>\n

Please follow the steps based on your situation:<\/span><\/p>\n

A) I\u2019ve only entered initial stock levels, but not purchase\/sales orders<\/a><\/p>\n


\n<\/a>B) I\u2019ve already entered in stock levels and purchase & sales orders<\/a>
\n<\/a><\/p>\n

A) I\u2019ve only entered initial stock levels, but not purchase\/sales orders<\/b><\/h2>\n

If you\u2019ve already\u00a0entered your current stock levels and costs, then switched to FIFO\/LIFO, you\u2019ll find that the stock levels remain but the costs are now $0. <\/span>This is because FIFO\/LIFO costing method only calculates your cost through purchase orders. <\/span>You\u2019ll need to reset the stock levels and bring that initial cost and stock level into inFlow in the form of a purchase order.<\/span><\/p>\n

Here\u2019s how to reset your stock levels:<\/span><\/p>\n

    \n
  1. Go to the <\/span>Main Menu > General > Export Data<\/span><\/i> > and choose data type <\/span>Stock Levels<\/span><\/i> to export your data as a .csv file.<\/span><\/li>\n
  2. Now we need to reset your stock levels. Go to <\/span>Main Menu > General > Import Data<\/span><\/i> > and choose data type <\/span>Stock Levels<\/span><\/i>. Choose the file you created in step 1 and click <\/span>Next<\/span><\/i>.<\/span><\/li>\n
  3. At the top of the next window, choose \u00a0<\/span>Subtract it from existing inventory<\/span><\/i>, then click <\/span>import<\/span><\/i>.<\/span><\/li>\n<\/ol>\n

    Check inFlow\u2019s <\/span>Main Menu > Inventory > Current Stock. <\/span><\/i>Your inventory should be at zero.<\/span><\/p>\n

    To import your initial cost and stock level into inFlow as a purchase order:<\/p>\n

      \n
    1. Open the stock levels file from your steps above in Excel. We need to convert this to a Purchase Order import file. To do this, remove the \u201cLocation\u201d and \u201cSublocation\u201d columns. Then add four new columns named \u201cOrderDate\u201d, \u201cOrderNumber\u201d, \u201cVendor\u201d and “ItemUnitPrice”\u00a0<\/span><\/li>\n
    2. For the the columns \u201cOrderDate\u201d, \u201cOrderNumber\u201d, \u201cVendor\u201d, set them all to be the same as in the example screenshot below. In the “ItemUnitPrice” column, enter your product cost for each item line:
      \n
      \"\"<\/div><\/span><\/li>\n
    3. Click <\/span>File > Save As<\/span><\/i>, and in the file type selection box below make sure you\u2019ve chosen <\/span>CSV (Comma Delimited)<\/span><\/i>. Click \u201cYes\u201d to all subsequent prompts about Excel formatting.<\/span><\/li>\n
    4. Go to the <\/span>Main Menu > General > Import Data<\/span><\/i> > and choose the data type Purchase Order. Import from the PO file created above.<\/span><\/li>\n
    5. In the import match screen, inFlow should have already pre-filled some of the columns for you, but you should check that they match.<\/span><\/li>\n<\/ol>\n

      Check your current stock levels, they should be back up to where they were before. Now check your products, there should be a cost in there now that there\u2019s a purchase order in the system corresponding to it. In the future, your costs will only change through a purchase order.<\/span>
      \n      <\/a><\/p>\n

      B) I\u2019ve already entered stock levels and orders <\/b><\/h2>\n

      If you already have purchase orders and sales orders in inFlow and have decided to change your costing method to FIFO\/LIFO, the steps to correct your costing will depend on how \u00a0you entered your stock levels in the past:<\/span><\/p>\n

      If your initial stock levels were imported into inFlow:<\/strong><\/p>\n

        \n
      1. Go to the <\/span>Main Menu > Inventory > Adjust Stock<\/span><\/i> and look for the earliest adjustment (it should include the remarks: \u201cAdjustment created from import\u2026\u201d). Note the date of the adjustment, too.<\/span><\/li>\n
      2. Right-click on the headers and click <\/span>Export Contents to CSV<\/span><\/i>. Then click the <\/span>Cancel<\/span><\/i> button to remove the adjustment.
        \n
        \"\"<\/div>
        \n<\/span><\/li>\n
      3. Open the CSV file from step 2. We need to convert this to a PO import file. To do this, remove the \u201cLocation\u201d, \u201cSublocation\u201d, \u201cOld Quantity\u201d and \u201cDifference\u201d columns.<\/span><\/li>\n
      4. Add four new columns named \u201cOrderDate\u201d, \u201cOrderNumber\u201d, \u201cVendor\u201d and “ItemUnitPrice”. Set the \u201cOrderDate\u201d to be the same as the date of the original stock adjustment. For the \u201cOrderNumber\u201d and \u201cVendor\u201d columns, set them all to be the same like in the screenshot below.\u00a0In the “ItemUnitPrice” column, enter your product cost for each item line:
        \n
        \"\"<\/div>
        \n<\/span><\/li>\n
      5. Click <\/span>File > Save as<\/span><\/i> , and in the file type selection box below make sure you\u2019ve chosen <\/span>CSV (Comma Delimited)<\/span><\/i>. Click <\/span>Yes<\/span><\/i> to all subsequent prompts about Excel formatting.
        \n<\/span><\/li>\n
      6. Go to the <\/span>Main Menu > General > Import Data<\/span><\/i> > data type <\/span>Purchase Order<\/span><\/i>. Import from the PO file created in step 5.<\/span><\/li>\n
      7. In the import match screen, inFlow should have already pre-filled some of the columns for you, but you should check that they match.<\/span><\/li>\n<\/ol>\n

        inFlow calculates the cost starting from the very first purchase order, so this should be the only thing that needs to be changed.<\/span><\/p>\n

        If your initial stock levels were manually entered into inFlow:<\/strong><\/p>\n

          \n
        1. First, we need to temporarily turn off item descriptions, go to <\/span>Main Menu > Options > Settings > Show products by item name only<\/span><\/i>.<\/span><\/li>\n
        2. Go to the <\/span>Main Menu > Reports > All Reports > Inventory Reports > Historical Inventory Report.<\/span><\/i><\/li>\n
        3. Set the <\/span>Target Date<\/span><\/i> to the day you input all your initial stock levels.<\/span><\/li>\n
        4. Click <\/span>Save As<\/span><\/i> and set the type to Microsoft Excel Data only (.xlsx).<\/span><\/li>\n
        5. Now you\u2019ll need to cancel the first stock adjustment for each item you have. This has to be done otherwise the purchase order import in the next few steps will duplicate it and you\u2019ll end up with incorrect stock levels.<\/span>\n
            \n
          • Go to the Main Menu > Inventory > Adjust Stock<\/em> and filter your stock adjustments by the date you input all your initial stock levels <\/span><\/li>\n
          • Cancel every stock adjustment that was made when you input your stock levels for the first time<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n

            Re-importing the xlsx file as a purchase order:<\/span><\/i><\/p>\n

              \n
            1. Open up the .xlsx file created above. We need to convert this to a PO import file. <\/span><\/li>\n
            2. Add the names of the columns in the first row. Add four new columns named \u201cOrderDate\u201d, \u201cOrderNumber\u201d, \u201cVendor\u201d and “ItemUnitPrice”. Set the \u201cOrderDate\u201d to be the same as the date of the original stock adjustment. For the \u201cOrderNumber\u201d and \u201cVendor\u201d columns, set them both to be the same like in the screenshot below.\u00a0In the “ItemUnitPrice” column, enter your product cost for each item line:
              \n
              \"\"<\/div>
              \n<\/span><\/li>\n
            3. Click <\/span>File > Save As<\/span><\/i> , and in the file type selection box below make sure you\u2019ve chosen CSV (Comma Delimited). Click <\/span>Yes<\/span><\/i> to all subsequent prompts about Excel formatting.<\/span><\/li>\n
            4. Go to the <\/span>Main Menu > General > Import Data<\/span><\/i> > data type <\/span>Purchase Order.<\/span><\/i> Import from the PO file created in step 3.<\/span><\/li>\n
            5. In the import match screen, inFlow should have already pre-filled some of the columns for you, but you should check that they match.<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

              inFlow On-Premise’s First-in, First-Out \/ Last-in, First-Out (FIFO\/LIFO) costing method calculates your cost strictly through purchase orders. The steps to correct your costing depend on whether or not you already have purchase and sales orders in the system. Please follow the steps based on your situation: A) I\u2019ve only entered initial stock levels, but not […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_et_pb_use_builder":"","_et_pb_old_content":""},"categories":[20,23],"tags":[49],"_links":{"self":[{"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/posts\/3133"}],"collection":[{"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/comments?post=3133"}],"version-history":[{"count":9,"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/posts\/3133\/revisions"}],"predecessor-version":[{"id":30009,"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/posts\/3133\/revisions\/30009"}],"wp:attachment":[{"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/media?parent=3133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/categories?post=3133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onpremise.inflowinventory.com\/support\/wp-json\/wp\/v2\/tags?post=3133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}