FIFO and Management Accounting
FIFO Settings when Using Management Accounting
If you use the supplement Management Accounting, there are a few settings that you must configure in order to follow up on FIFO in the management accounting. The basic idea with FIFO in management accounting is that all inventory log transactions will be coded twice. First the transaction will be coded at a preliminary price and then it will be reversed when the final price is coded. The reversal from preliminary price to final price will be made on the same day so that no balances will be changed historically. This is made in order for the management accounting to correspond to reconciliation lists such as invoice basis, inventory value list, WIP value, and invoicing log.