Help on Database design for Inventory with FIFO costing

[chris.jurado]

Well, let's call this thread closed. Administrator, will you do the honor?

[davey23uk]

threads dont get closed here

[mngantung]

Hi All,


I know this has been a couple years since this issue has been brought up. I'm working on inventory costing method using Average algorithm. I like the idea that Tamil and Chris came up. However, I don't think that would be possible for average costing method since we need to know the current average unit cost instantly.

Please advise. Thanks.

[chiefpenguin]

In this topic you need to remember the options in accounting for inventory valuation:
FIFO, LIFO, Weighted Average
And then also remember companies may have several options for inventory methods:
periodic - in which inventory is calculated (counted) at the end of a period (e.g. monthly, quarterly, yearly).
perpetual - in which inventory is calculated at the time when a sale is recognized.

This matrix must be considered which affects the posting and calculation rules associated with accounting/ERP/code. then the question also is - whether or not this company is a manufacturer or a retail distributor or both - because that also affects some of the calculations.

My recommendation is that you pick up Schaum's Accounting I as an intro to get the basic fundamentals of the domain options.

[shamil]

Thanks, tamilselvan.

You confirmed the solution I'm thinking about but I just had a slight variation. I'm applying my "Availably Qty" solution to improve performance on cost calculation. Any deductions to inventory will have no cost yet. There will be a Finalize procedure that will assign the costs up to a certain date that the user (w/c has the appropriate right to do so) specifies. Before doing this, all transactions not finalized on or before that date must be reviewed and deemed correct. Once costs are calculated no deletions/modifications will be allowed. Any additional transactions' date must also be beyond any finalized stock transaction.

Sorry if that accounting discussion may have kind of insulted you, I think. My apologies. I am also not a cost accountant--not even close. I just know a little.

Hello Chris, years past since this discussion. Now i have came across same problem. Could you tell me about your last solution and advice on this issue. Should i go to this solution? Can we make this solution work also for average costing. Your advice appreciated.