Concepts Progblem - FIFO / LIFO / W.A.M / CMV 
Author Message
 Concepts Progblem - FIFO / LIFO / W.A.M / CMV

I don't know if I should ask this question in this news group but I
appreciate any comments in advance.

The company I work with recently got into some trouble with the
Auditors. The Auditors said that we told them that we're using the
Weighted Average Method for computing our Raw Materials but in fact some
clever programmer (not me) has change the programs to be Current Market
Value.

As the debate is going on, the management has decided to use the FIFO
method. I know that FIFO is First In First Out. But in terms of
programming, how do you keep track of this?? Per month the transactions
here are more than 10,000 records alone for receiving, meaning a lot!


  steven.vcf
< 1K Download


Mon, 29 Apr 2002 03:00:00 GMT  
 Concepts Progblem - FIFO / LIFO / W.A.M / CMV
The simplest way to explain it is this:

Goods  for resale need a date of purchase, increase the inventory for the
item for that date.

When goods are sold, reduce the item's inventory from the earliest purchase
date. Apply the cost for the earliest date to calculate the margin or
profit.

If an item has only 50 remaining in the oldest date, and you sell 100, part
of the margin comes from the oldest purchase, the next 50 (and the margin)
come from the next oldest purchase.

I think you get the idea. You need an ascending index of purchases. The
total inventory is the SUM of the purchases 'remaining' .

But sales reduce the inventory from the oldest purchase to the most recent
in the 'remaining' field. (Each record needs a bought and remaining field).

Quote:

> I don't know if I should ask this question in this news group but I
> appreciate any comments in advance.

> The company I work with recently got into some trouble with the
> Auditors. The Auditors said that we told them that we're using the
> Weighted Average Method for computing our Raw Materials but in fact some
> clever programmer (not me) has change the programs to be Current Market
> Value.

> As the debate is going on, the management has decided to use the FIFO
> method. I know that FIFO is First In First Out. But in terms of
> programming, how do you keep track of this?? Per month the transactions
> here are more than 10,000 records alone for receiving, meaning a lot!



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Mon, 29 Apr 2002 03:00:00 GMT  
 
 [ 2 post ] 

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