Running the Layered Inventory Valuation Report

Use the Layered Inventory Valuation Report to devalue old inventory on a layered FIFO (first in first out) basis.

Any product that has a FIFO stack one to two years gets 50% reserved as Devalued Inventory. Any product that has a FIFO stack of two years or more gets 100% reserved as Devalued Inventory. An adjustment is made to the Profit Center's gross profit based an increase or decrease in this value.

The Writedown % fields display the percentage that the value of the products in the price lines will be reduced over a number of months.

For example, if you make the following assumptions:

• A product's cost basis is Cost of Goods Sold.

• The value per item is $1.00.

• The writedown for each aging bucket is a cumulative 20%.

• There are 90 pieces on hand for each aging bucket.

The writedown for the aging buckets is:

• ((90 pieces*$1.00)*.20) =$18 for 0 to 3 months (at 20%)

• ((90*$1.00)*.40) =$36 for 4 to 6 months (at 40%)

• ((90*$1.00)*.60) =$54 for 7 to 9 months (at 60%)

• ((90*$1.00)*.80) =$72 for 10 to 12 months (at 80%)

To run the Layered Inventory Valuation Report:

1. From the Reprts > End of Month Reports #2 menu, select Layered Inventory Valuation Report to display the Layered Inventory screen.

2. In the Br/Tr/All field, enter the number that identifies the branch or territory to include in this report. Separate multiple branches or territories with commas, such as 1, 3, 5. To include all branches and territories, enter ALL.

3. In the As of Date field, enter the date as of which to value the inventory. The system populates the field with the current date. This field supports variable dates.

4. In the Price Line field, select how you want to run the report. Do one of the following:

• To run the report for one price line, enter the price line ID.

• To run the report for all price lines, leave the field blank.

• To run the report for multiple price lines, use the Price Line hot key to display the Price Line Selection screen. Enter the ID of each price line to include on the report and press Esc. *Multi* displays in the Price Line field.

5. In the Cost Basis field, select the Global Basis code to use to value the inventory. The default value is Cost of Goods Sold (COGS-COST).

6. In the Detail/Summary field, enter one of the following to determine the report level of detail:

• Detail – Lists product descriptions, on-hand quantities, receive date, PO #, PO vendor, quantity received, unit cost, external cost, layer and writedown.

• Summary – Lists price line or buy line, layer totals and writedowns only.

7. Change any of the following writedown fields, as needed:

Note: To change the number of months in each aging bucket, use the Writedowns hot key to display the Writedown Buckets window. Change the months, as needed, and press Esc to return to the Layered Inventory screen. The new months display in each of the Writedown % fields.

8. Complete or change the following fields, as needed:

9. Set options, if needed, and generate the report.

See Also:

Inventory On Hand With No Sales Report