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The Initialize Inventory FIFO Data screen is accessed via the link of the same name on Inventory & Suppliers tab of the Maintenance Menu.
Prior to performing any major function, such as initializing FIFO data, it is advisable to back up the store data file.
FIFO stands for "First In, First Out" and refers to a method of tracking the cost of goods. If FIFO is enabled, the program will track the cost of incoming and outgoing inventory. Each product record must then have a value in the Unit Cost field, otherwise, the program prompts the user to enter that information when the inventory item is received or otherwise adjusted.
There are two ways to initialize FIFO data in the program:
by importing cost information from an external source, such as a text file or database
by having the program create the data based on the cost information currently in the product inventory tables
FIFO data is normally updated as inventory is received from a supplier (vendor) Purchase Order. If the Purchase Order system is not being used, the user is still able to update cost information at various other locations in the program, such as the Receive Inventory screen.
When an item is sold, the cost of that item is stored in the order detail record. When FIFO is enabled, the program may have multiple costs for the same item. The program determines the cost by averaging the costs of the different FIFO records for the units that filled the order. The program chooses the inventory that will fill the order on an oldest to newest basis. For example, if an order requires two units of a product and the oldest FIFO record indicates there is one item remaining at a cost of $1.00, and the next FIFO record indicates there are 10 units that were received at $1.50, the program will fill the order with one unit from each FIFO record. The cost that is indicated in the order detail record shows the average cost of the two FIFO records, or $1.25 each. If either one of those units is returned for any reason, the program puts it back into inventory at $1.25.
The current FIFO numbers for a particular product can be viewed by clicking the FIFO Status button on the Product Info tab of the item's inventory record. This button is not visible until FIFO has been enabled.
FIFO data can be re-initialized at any time, but be aware that it will impact your accounting reports at year end.
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Figure 1: Intialize FIFO Data - Method A, from current inventory data
Figure 2: Intialize FIFO Data - Method B, from an external data source
When the FIFO data is being imported from an Access database, the program will attempt to map the Order Manager fields to the fields in the database table (drop-down lists) by comparing the field names. If it is not able to do so correctly, the user must manually select the correct field from the appropriate drop-down list.
Each drop-down is labeled as one of the required Order Manager fields, Local SKU, Item Name, Quantity and Cost. Each drop-down list contains the entire list of field names found in the external database. Choose the appropriate external field that corresponds to the required Order Manager fields.
This section of the screen displays the records found in the external table specified by the Database table to import from field. The column headings are the actual external table field names and will change depending upon the table being used. Up to fifty fields of that table are shown in this grid; use the horizontal scroll bar to see all of them.
Figure 3: FIFO settings found in the Setup Wizard
The easiest way to enable FIFO is via the Store Setup Wizard. Go to Page 1 of the Accounting Options section of the Setup Wizard, seen in Figure 3.
Check the box labeled Track your Cost of Goods on a FIFO (First In First Out) basis. This sets system parameter TrackInventoryFIFO equal to TRUE, without having to click the Save and Exit button on the Store Setup Wizard screen.
Click the [Initialize FIFO] button, which opens the Initialize FIFO Data screen.
Continue with the directions in section Initializing FIFO Data (Establishing the Starting Cost Information for Products)
Prior to performing any major function, such as initializing FIFO data, it is advisable to back up the store data file.
Once the Initialize FIFO Data screen has been opened, via the Inventory & Suppliers tab of the Maintenance Menu, or through the Store Setup Wizard, the next step is to choose the method by which the program will establish initial cost information for all products in the system.
There are two choices:
Select the From current Quantity on Hand and Supplier Costs radio button. Refer to Figure 1.
Click the [Initialize Data] button.
The program will prompt the user for confirmation before proceeding with the changes:
Figure 4: Prompt for confirmation before initializing FIFO data
Click the [OK] button to proceed with the changes.
The program displays a message box confirming the completion of the changes.
Figure 5: Acknowledge the process has been completed
Click [OK] to acknowledge the process has been completed. The Initialize FIFO Data screen is closed and the user is returned to the calling location (Store Setup Wizard or Inventory & Suppliers tab of the Maintenance Menu).
Make another backup copy of the store data file after the FIFO data has been initialized.
Select the From data imported from an Access database radio button. Refer to Figure 2.
Enter the path and fully qualified name of the database that contains the FIFO data to be imported into the Order Manager in the Access database to import from field, or use the [Browse] button to navigate to its location.
Select the appropriate table in the external database from the Database table to import from drop-down list.
The program attempts to map the fields in the external database to their corresponding fields in the Order Manager, or the user can manually select the appropriate field from any of the drop-down lists labeled Local SKU, Item Name, Quantity and Cost.
In the datasheet at the bottom of the page, the first fifty fields of the external database table will be displayed. The heading of the columns reflects the actual field name in the table, and will change depending on the layout and names of the table that is currently viewed. Review the data to ensure the correct mappings have been made.
Click the [Begin Import] button.
The program will prompt the user for confirmation before proceeding with the changes:
Figure 6: Prompt for confirmation before initializing FIFO data
Click the [OK] button to proceed with the changes.
The program displays a message box confirming the completion of the changes.
Figure 7: Acknowledge the import process has been completed
Click [OK] to acknowledge the process has been completed. The Initialize FIFO Data screen is closed and the user is returned to the calling location (Store Setup Wizard or Inventory & Suppliers tab of the Maintenance Menu).
Make another backup copy of the store data file after the FIFO data has been initialized.
Go to the Inventory screen and navigate to the desired product record.
Click the [FIFO Status] button. This button is not visible unless FIFO has been enabled.
Figure 8: Inventory screen when FIFO is enabled
Figure 9: FIFO Status display
Created: 8/11/2011
Modified: 9/2/11
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