Adjustments to Items Using FIFO or LIFO Costing
For items using the FIFO or LIFO costing method, the program keeps track of the order in which units arrive at a location by storing each item's receipt date, receipt number, quantity, and extended cost in individual "buckets."
You can select from three options in the Bucket Type field on detail lines for how to make adjustments to items that use the FIFO or LIFO costing method: Offset Bucket, Specific Receipt, or Prorate.
Offset bucket. If you select Offset Bucket, then adjustments affect only the offset bucket.
For each item at each location, there is an "offset" bucket the program uses for special cases, such as when you ship more items than there are in stock from a location (you must have set up Inventory Control to allow negative inventory levels in order to do this). Offset buckets contain a quantity and a cost, but do not contain a date or receipt number, like other buckets.
Specific Receipt. You can specify a receipt number to select the cost and quantity information for a particular receipt. The number of the receipt from which a bucket is created is contained in the bucket.
Prorate. Select Prorate to have the program prorate the adjustment across all buckets (including the offset bucket) for the item at the location. The number of units and the amount of cost prorated to each bucket is based on the quantity in each bucket.
The program determines which buckets to adjust by whether the costing method is FIFO or LIFO.
See also