dynamics gp fifo inventory layers

Posted on 2013-06-19
Medium Priority
Last Modified: 2015-03-28
i have an issue where I am willing to let my qty on hand go negative on certain items.  The problem i'm seeing in my fifo perp valuation is I invoice the item and then receive it in, that cost layer just hangs there, and seems to be used the next time the item is sold.
That won't work for me as they will perpetually be one off.  It seems it would create an outflow for that item to avoid this issue.
Anyone know if this is how it's supposed to work?
Question by:goss912
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Accepted Solution

John Hurst earned 2000 total points
ID: 39262094
I invoice the item and then receive it in, that cost layer just hangs there

That is the way it is supposed to work (new cost input after inventory zeroed out).

You cannot really sell negative inventory - only bookkeep it. So the way to avoid the issue is to make sure purchases have been put in first. Commonly, you would invoice at the point of shipping - otherwise there is a danger that the customer will see an invoice before they see the product.

Is this retail or manufacturing?  If retail, you can consider using the average inventory cost method which would alleviate this issue.

.... Thinkpads_User
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ID: 40684376
I've requested that this question be deleted for the following reason:

Not enough information to confirm an answer.
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Expert Comment

by:John Hurst
ID: 40684377
My answer (http:#a39262094) was the correct answer for this. Purchase first and do not have negative inventory.

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