How to handle LIFO/FIFO inventory changes every quarter
Because item costing is fixed upon creation, you cannot simply convert an existing item record when switching between LIFO and FIFO. You must instead inactivate all existing item records and create new ones, which makes it incredibly difficult to maintain consistent reporting structures, inventory accounting, and order-to-cash tracking.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
How to handle LIFO/FIFO inventory changes every quarter
- 1Pushing back on leadership to prove the business value of the switchDid this help you?
- 2Inactivating all existing item records and manually creating new onesDid this help you?
- 3Switching to Standard Costing insteadDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“What about when they do LIFO/FIFO changes every freaking quarter??”source ↗
“I'm also aware based on research already that Item costing is fixed once an item is created, and that you cannot convert an Item record from one to the other once it exists, so at minimum, this would require inactivating \_all\_ of our existing Item records and creating new ones.”source ↗
“My request for consulting is for any companies that have experience with this or done this already and can help with both a pro/con for leadership as to how involved this will be, and a technical review/quote for how this would be implemented while maintaining reporting structure, inventory accounting, and order to cash tracking including fulfillment and anything else I can't think of.”source ↗
Where this came up
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