FIFO Setup

Contents of this Topic: ShowHide

Overview

• FIFO (first in first out) method of tracking inventory costs 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. The Scan Non-PO items is not compatible with FIFO, all inventory receiving is done through the Purchase Order system.  

• 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   

• The current FIFO numbers for a particular product can be viewed by selecting the FIFO Status link on the Item tab of the Inventory screen. This link is not visible unless 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.  

Prior to performing any major function, such as initializing FIFO data, it is advisable to back up the store data file the MS Access or SQL database that contains the users order information and program preferences. It does not contain Reports, which are housed in the Monsoon OMS program file (MS Access database)..  

Description of the Screen

From the current Quantity on Hand and Supplier Costs Radio Button

• select this to use the current QOH and Supplier vendor Cost data in the program to establish the beginning FIFO levels in SEOM
• mutually exclusive with the From data imported from an Access Database radio button

Initialize Data Button

• after selecting the From data imported from an Access Database radio button, click this button to execute the initialization of the data in the SEOM tables

From data imported from an Access Database Radio Button

• select this button to import QOH and Cost information from an external database
• mutually exclusive with the From the current Quantity on Hand and Supplier Costs radio button
• when this radio button is selected, the fields drop-down lists below it are activated

Access database to import from Field

• enter the path to the Access database containing the FIFO data, or use the Open Folder icon to navigate to it

Open Folder Button

• use this icon to navigate to the location of the external database that contains the FIFO data to be imported

Database table to import from Drop-down List

• after the path to the Access database has been entered in the Access database to import from field, select the down arrow on this drop-down list to select to "left-click" the mouse on an object, usually a row in a table, in the context of Monsoon OMS documentation the table containing the FIFO data

Map the SEOM Fields to the Fields in the External Database Table

When the FIFO data is being imported from an Access database, the program will attempt to map Minimum Advertised Price; applies to Consumer Goods categories and listed on Amazon Seller Central Market the SEOM 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 SEOM fields, Local SKU the abbreviation for Stock Keeping Unit; a unique identifier used to track product inventory, 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 SEOM fields. 

Local SKU Drop-down List

• select the external table field that contains the product SKU

Item Name Drop-down List

• select the external table field that contains the product SKU

Quantity Drop-down List

• select the external table field that contains the QOH information

Cost Drop-down List

• select the external table field that contains the product cost information

Records in selected table (up to 50 fields shown): Section

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.

1. 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.

2. Select the box labeled Track your Cost of Goods on a FIFO (First In First Out) basis. This sets system parameter TrackInventoryFIFO equal to TRUE, immediately,without having to select the Save and Exit button on the Store Setup Wizard screen.

3. Select Initialize FIFO, which opens the Initialize FIFO Data screen.

4. Continue with the directions in following section Initializing FIFO Data (Establishing the Starting Cost Information for Products).

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 is opened, 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:

1. 1. populate the FIFO table based on the Quantity on Hand and Supplier Unit Cost data currently recorded in the inventory records; follow the directions in Method A

   2. import FIFO data from an external Access database table; follow the directions in Method B

Method A

1. Select the From current Quantity on Hand and Supplier Costs radio button.

2. Select Initialize Data button.  

3. The program prompts you for confirmation before proceeding with the changes:

4. Select OK to proceed with the changes.  

5. The program displays a message box confirming the completion of the changes.

6. Select OK to acknowledge the process has been completed. The Initialize FIFO Data screen is closed and the user is returned to the calling location.

7. Make another backup copy of the store data file after the FIFO data has been initialized.

Method B

1. Select the From data imported from an Access database radio button.

2. Enter the path and fully qualified name of the database that contains the FIFO data to be imported into SEOM in the Access database to import from field, or use the Open Folder icon to navigate to its location.

3. Select the appropriate table in the external database from the Database table to import from drop-down list.

4. The program attempts to map the fields in the external database to their corresponding fields in SEOM or the user can manually select the appropriate field from any of the drop-down lists labeled Local SKU, Item Name, Quantity and Cost.

5. In the datasheet at the bottom of the page, the first fifty fields of the external database table is displayed. The heading of the columns reflects the actual field name in the table, and changes depending on the layout and names of the table that is currently viewed. Review the data to ensure the correct mappings have been made.      

6. Select Begin Import.  

7. The program prompts the user for confirmation before proceeding with the changes:

8. Select OK to proceed with the changes.  

9. The program displays a message box confirming the completion of the changes.

10. Select OK to acknowledge the process is completed. The Initialize FIFO Data screen is closed and the user is returned to the calling location.

11. Make another backup copy of the store data file after the FIFO data is initialized.

Viewing Current FIFO Data for a Product

1. Go to the Inventory screen and navigate to the desired product record.

2. Select the Item tab.

3. Select FIFO Status link in the Accordion. This link is not visible unless FIFO is enabled.

4. The program displays a message box with FIFO information for that product. If some units of the product was received at different cost levels, they are each listed in this message box.

5. Select OK to close the message box.

FIFO Cost Reporting

• Cost data for items that have been sold is determined by averaging the costs associated with each FIFO record for a particular product that was allocated to an order, while FIFO costs for inventory that is presently in stock reflects the cost that was recorded when the merchandise was received from the vendor, or otherwise entered by the user.
• Therefore, the data contained in reports which are based on sales may not seem to jive with the data contained in reports that are based on the cost of the current inventory.
• The reports, Inventory Value - New and Inventory Value by Supplier show FIFO costs for products, which are based on the cost information provided by the Primary Supplier of the item. If no Primary Supplier is designated, the program uses the lowest cost from any of the supplier records associated with the item.  
• Returns which occur in a different month than when the item was purchased change the contents of some of the older standard reports, such as the Sales Summary report, depending on when the report is generated.  

Additional Information

Created: 8/11/12

Revised: 7/10/15

Published: 04/13/16