I switched to FIFO/LIFO costing but now all my costs are incorrect. What do I do?

inFlow On-Premise’s FIFO/LIFO costing method calculates your cost strictly through purchase orders. The steps to correct your costing depends on whether or not you already have purchase and sales orders in the system. Please follow the steps based on your situation:

A) I’ve only inputted initial stock levels, but not purchase / sales orders

B) I’ve already put in stock levels and purchase & sales orders / I’ve just upgraded from v2

A) I’ve only inputted initial stock levels, but not purchase / sales orders

If you’ve already inputted your current stock levels and costs, then switched to FIFO/LIFO, you’ll find that the stock levels remained but the costs are now $0. Remember that FIFO/LIFO only calculates your cost through purchase orders. So you’ll need to reset the stock levels, and bring that initial cost + stock level into inFlow in the form of a purchase order.

Here’s how to do this:

  1. First, make a backup of your database as we’re going to be doing some importing (Main Menu > General > Backup Data).
  2. Go to the Main Menu > General > Export Data > data type Stock Levels. This gives you the exported .csv file containing your stock levels.
  3. Now we need to reset your stock levels. Go to Main Menu > General > Import Data > data type Stock Levels. Set the file location to the one exported in step 2 (usually it’s on your desktop).
  4. Set the option to SUBTRACT it from existing inventory, then click import.
  5. Check inFlow’s Main Menu > Inventory > Current Stock. Everything should be at zero.
  6. Open up the stock levels file from step 2. We need to convert this to a PO import file. To do this, remove the “Location” and “Sublocation” columns. Then, add three columns named OrderDate, OrderNumber, and Vendor.
  7. For the three columns, set them all to be the same as in the example screenshot below.
    98077358_1
  8. Click File > Save as , then choose the file type as CSV (Comma Delimited). Click “Yes” to all subsequent prompts about Excel formatting.
  9. Go to the Main Menu > General > Import Data > data type Purchase Order. Import from the PO file created in steps 6-8.
  10. In the import match screen, inFlow should have already pre-filled some of the columns for you, but you should check that they match.

Check your current stock levels, they should be back up to where they were before. Now check your products, there should be a cost in there now that there’s a purchase order in the system corresponding to it. In the future, your costs will only change through a purchase order.

B) I’ve already inputted stock levels and orders / I’ve just upgraded from v2

If you’ve already been using inFlow’s purchase orders and sales orders, but now decided to change your costing method, the method is the same as above (changing your initial stock levels into a purchase order), but it is trickier depending on how you inputted your stock levels in the past. However, if you’ve just upgraded from v2 and have a lot of data, it might be best to archive your old information and start fresh.

If your initial stock levels were imported into inFlow:

  1. First, make a backup of your database as we’re going to be doing some importing (Main Menu > General > Backup Data).
  2. Go to the Main Menu > Inventory > Adjust Stock and look for the earliest adjustment (with remarks: “Adjustment created from import…”). Note the date of the adjustment also.
  3. Right-click on the headers and click Export Contents to CSV. Then click the cancel button to remove the adjustment.
    98077358_2
  4. Open up the csv file from step 3. We need to convert this to a PO import file. To do this, remove the “Location”, “Sublocation”, “Old Quantity” and “Difference” columns.
  5. Rename the “New Quantity” column to just “ItemQuantity”.
  6. Then, add three columns named OrderDate, OrderNumber, and Vendor. Set the OrderDate to be the same as the date of the original stock adjustment. For the three columns, set them all to be the same like in this example screenshot:
    98077358_3
  7. Click File > Save as , then choose the file type as CSV (Comma Delimited). Click “Yes” to all subsequent prompts about Excel formatting.
  8. Go to the Main Menu > General > Import Data > data type Purchase Order. Import from the PO file created in steps 6-8.
  9. In the import match screen, inFlow should have already pre-filled some of the columns for you, but you should check that they match.

inFlow calculates the cost starting from the very first purchase order, so this should be the only thing that needs to be changed.

If your initial stock levels were manually inputted into inFlow:

  1. First, make a backup of your database as we’re going to be doing some importing (Main Menu > General > Backup Data).
  2. We also need to temporarily turn off item descriptions here, go to Main Menu > Options > Settings > Show products by item name only.
  3. Go to the Main Menu > Reports > All Reports > Inventory Reports > Historical Inventory Report.
  4. Set the target date to the day you inputted all your initial stock levels.
  5. Click “Save As” and set the type to Microsoft Excel Data only (.xlsx).
  6. Now you’ll need to cancel the first stock adjustment for each item you have. This has to be done otherwise the purchase order import in the next few steps will duplicate it and you’ll end up with incorrect stock levels.

Re-importing the xls file as a purchase order:

  1. Open up the .xls file created above. We need to convert this to a PO import file. To do this, remove all columns with currency symbols, leaving only your item name and quantity columns.
  2. Add the names of the columns in the first row. Then, add three columns named OrderDate, OrderNumber, and Vendor. Set the OrderDate to be the same as the date of the original stock adjustment. For the three columns, set them all to be the same like in this example screenshot:
    98077358_3
  3. Click File > Save as , then choose the file type as CSV (Comma Delimited). Click “Yes” to all subsequent prompts about Excel formatting.
  4. Go to the Main Menu > General > Import Data > data type Purchase Order. Import from the PO file created in steps 6-8.
  5. In the import match screen, inFlow should have already pre-filled some of the columns for you, but you should check that they match.

If you are having trouble with any of the steps above, please contact support using any one of the methods below!

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