Changing Valuation Methods

Back up all I/C data. Also back up data for Accounts Receivable, Order Entry, Point of Sale and Purchase Order, if you are using any of these modules.

This provides you a means of recovering your data, if needed, as they existed prior to making the changes below.

All I/C processing currently underway must be completed before any change of inventory valuation or warehousing methods is begun.

If you are using Purchase Order, post all purchase requests before continuing. Refer to the Purchase Order documentation.

If you are using Order Entry, Accounts Receivable or Point of Sale and are switching from multi-warehousing to single warehousing, close out all orders with line items to be shipped from warehouses other than the Central warehouse.

If it is not possible to print invoices and post all line items for all orders from these warehouses, you will have to delete these orders before continuing (they can be reentered later after completing the instructions in this section).

You should also remove (by posting or deleting) any order or invoice that refers to other than the Central warehouse. Refer to the Order Entry, Point of Sale or Accounts Receivable documentation for instructions on how to print and post invoices and delete line items or orders.

If you are using kits, complete and close all work orders prior to changing your valuation method or warehousing method.

Complete all inventory transaction processing.

If you have just posted from O/E, P/S or A/R, all inventory transaction processing is already completed. If you have just posted from Purchasing, inventory transaction processing may not be completed. If it is unclear whether transaction processing is incomplete, try to print an Inventory Transaction Edit List. This is done by selecting Edit list from the Inventory menu.

If you track serial numbers, you should also try to print a transaction edit list for serial transactions by selecting Edit list from the Serial numbers menu.

If any unposted transactions are present, run Post on the Inventory menu and/or on the Serial numbers menu. This completes any transaction processing that may have been in progress.

This applies if you are switching from LIFO to FIFO or if you are switching from FIFO to LIFO.

If you are using General Ledger (G/L) any outstanding I/C distributions must be interfaced to G/L before continuing.

If it is unclear whether any distributions exist, try to print an I/C Distribution to G/L Report by selecting Distributions to G/L from the Reports menu. If any distributions show on the report, run Get distributions from the General Ledger Distributions menu. Refer to the Distributions chapter in the General Ledger documentation.

Whether or not you are running General Ledger, print and purge the Distributions to G/L report.

If you are not switching valuation methods, you can skip to step 6.

If you are currently using LIFO and are switching to FIFO, or if you are currently using FIFO and are switching to LIFO, print a Valuation report. Print the report for your entire range of items.

The layers shown on the report will be in the reverse order of the order in which they need to appear after you switch to LIFO from FIFO, and vice versa.

Later, you will have to re-enter receiving transactions for all items/layers in order to get them into the proper order for your new valuation method.

If you are switching from multi-warehousing to single-warehousing, you must delete all status records from Statuses for warehouses other than the Central warehouse. If balances remain at those warehouses, transfer them to the Central warehouse before deleting the status records. Do not forget to enter any serial numbers for serialized items, or lot numbers for lot-controlled items, as you enter the transfer transactions.

To delete the Status records, run Status from the I/C menu. When using vision files, in order to recover disk space, after the deletion, you may run Data (file) recovery utilities.

From the Data (file) recovery utilities menu, select Export a file and export Status (STAFIL). After the export is completed, select Restore a file from export and restore Statuses using the C (Create new file) option.

Change the inventory valuation or warehousing method specified in the I/C Control information. However, the Control information selection prevents you from changing these options. Also, if a change to LIFO or FIFO costing is being done, the Layers file/table (which contains LIFO/FIFO layers) must be created.

In either case, the I/C Control information must be initialized prior to doing so. Refer to the Initializing Data chapter in the PBS Administrative documentation. Before doing this, write down the current values in the I/C Control information. You may also select Ctl+P and print the screens/tabs.

If you are switching to LIFO or FIFO, or switching from LIFO/FIFO to Average or Standard costing, also initialize Layers.

If you are switching from multi-warehousing to single-ware-housing, you should also initialize Warehouses, because the data in here will no longer be needed.

After initializing I/C Control information, re-enter its data with the new options.

If you have switched from single to multi-warehousing, run Warehouses from the Master information menu to define your warehouse(s). You may also run the Status load selection from the I/C Utility menu. This gives you an easy way to set up status records for the appropriate items in your warehouse(s).

From top-level PBS menu select ICUTIL. Run Recalculate inventory quantities from the Data (file) recovery utilities menu. This selection sets the quantity fields in Items and Statuses to the totals for the Layers and the Order Line Items (if you are using O/E, P/S or A/R).

If you have switched from Average or Standard costing to LIFO or FIFO, you should enter receiving transactions for all items to create layer history. Enter a separate receiving transaction for each layer to be created.

If you have switched from LIFO to FIFO (or vice versa), you should enter receiving transactions for all items/layers in order to reorder the layer history. Refer to the Valuation Report printed in step 5.