Assembling Master Items that Use FIFO or LIFO Costing
Inventory Control processes assemblies for items using FIFO and LIFO costing methods, as described below:
FIFO / LIFO buckets
The program keeps track of the order in which units arrive at a location by storing their receipt date, receipt number, quantity, and extended cost in individual "buckets."
When you assemble units of a master item the program removes each of the components from inventory, at the location you specified, and costs them according to their item costing methods. The component costs are added to the fixed cost and variable cost of the master item. Inventory Control then creates a bucket at the same location and stores the assembly number in the bucket. If some time later you want to adjust the item quantity or cost in a specific bucket created by an assembly, you can identify the bucket by the assembly number, which you will find on the Assemblies Posting Journal.
Check component item quantities and locations. Before posting assemblies, you can use the Verify Quantities button in the Assemblies form to display a list of component items having insufficient quantity in stock to assemble the quantity of master items you specified in the Quantity field.
If you did not select the Allow Items At All Locations option in the Options form, the Verify Quantities button also displays a list of component items not stocked at the location specified in the Location field.
See also