FIFO Track

The first in, first out (FIFO) track is a bonded zone application designed for the authorized accounting team to review and analyze inventory valuation. FIFO operates on a cost flow assumption, which dictates that the first goods purchased are also the first goods sold or removed from the inventory account. FIFO track is closely related to transactions. With FIFO Track, you can identify goods’ quantity and their cost, and identify and validate goods’ transactions. All goods’ cost calculation on FIFO track is automatically done behind the scenes by the system.

When opening the FIFO Track main table, you will see list of goods that have been made during the transactions process. From there you can start evaluating the inventory valuation for each item by double-clicking on it.

To create an inventory valuation report:

  1. Open the FIFO Track table.

    The FIFO Track Table

The FIFO Track Table

  1. Click the Table menu, then click Export.

  2. In the Export from FIFO Track window, click Export to export the FIFO track data to .CSV file.

  3. Then, you will analyze the quantity for each item part number per the warehouse storage and transaction history.

  4. Verify the list of items and the final stock from the inventory evaluation report at the closing date at the end of each month.

  5. Then, identify the quantity and the cost of each part number by the product list and business unit.

  6. Pivot the data based on the product item and business unit.

    Note

    Pivot is a formula in Microsoft Excel to sort large amounts of data by the desired data catogory. For more information, please click here.

  7. After you have completed the above steps, you will see the item stock in each warehouse per closing date, product line, and business unit.

    Note

    This data will be stored in the Quickbook (QB), which is the accounting software used to store the monthly inventory evaluation report. The Quickbook (QB) is only accessible for the Accounting and Finance team.