What is your real item valuation in MISys if you are on FIFO?
If you use FIFO as your costing method, you might be confused as to which valuation report you should use to reconcile your inventory balance with the accounting software after a period end post.
MISys has TWO item valuation reports and these reports yield somewhat different results.
Item Valuation report will provide an accurate inventory valuation if users are on Standard or Average Costing; however, under FIFO – you should use the Item Cost History Valuation report, because each item receipt has a specific cost bucket associated to it. Each cost bucket might have varied unit costs that provide an overall extended value that is not consistent with the values reported on the Item Valuation Report.
An example of the Item Cost History Valuation is below showing each cost bucket for item I-11 from our Sample Company.
If you’re using FIFO and have more questions about this, feel free to contact one of us!
Dean.