Sage 100 ERP: How to change item valuation from average cost to FIFO

Question: Mike, we own Sage 100 ERP (formerly Sage MAS90), we are interested in changing the valuation method of several inventory items from Average Cost to FIFO. How do we do this?

Answer:  There is a utility to do this. It is inventory item valuation selection and maintenance. However other steps are required. 

Step 1:  First it is recommended that the Items that are being changed be adjusted to a zero inventory balance first. 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 to be changed 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.

 

 

Written by Mike Renner, Partner WAC Consulting, Owner at Computer Accounting Services

Mike is and expert on Sage 100 ERP with over 25 years in the accounting software industry. Mike is also a Sage Certified Trainer and a recognized leader in the design, implementation and support of ERP systems, including Sage.