Change Costing Method

After an item has been established and used regularly, the system will not allow you to change costing methods within the Item table. However, the Change Costing Method option will allow you to do so for one item or a group of items.

For best results, it is recommended that before you run this option, the item(s) for which you want to change costing methods should:

• ...not be associated with any discrepancies such as out of balances; it also should not be in a hold lot situation, or have a lengthy uncosted status, etc. You must resolve these issues before proceeding.
• ...not be on an order (or going to be put on an order) before or while you are using this option.
• ...be at a zero balance.

You may transfer the weight to a temporary or dummy item code or adjust/discard the amount.

Note: Running this utility does not affect your history.

Note: You should create a backup of your data before running the Change Costing Method utility. See Backup Data for more information.

Note: You should run an Inventory Valuation and Lotted Inventory Valuation Report sorted by item, location and lot before and after you run the Change Costing Method to confirm that the system converted the costing method and that your unit costs per location did not change.

WARNING: Changing from weighted average cost to individual lot cost will not properly convert the unit cost of the item when the Item Costing Location setting in Ledger Options is set to "by item" and you want to change it to "by location".

1. At the Lotted Items (Y/N) field, if you select Y (Y = Yes), the system will allow you to change the costing method for lotted items only. If you select N (N = No), the system will allow you to change the costing method for non-lotted items only.

2. At the From and To Costing Method fields, a Select A Costing Method window will appear and display all costing methods available in the system. The costing methods are:

• F – FIFO
• L – LIFO
• I – Individually Lotted
• W – Weighted Averages
• S – Standard
• U – User Defined

3. At the From Costing Method field, select the appropriate costing method for the item you want to change by highlighting the line and pressing Enter. Your selection will default in the From Costing Method field.

4. At the To Costing Field, select the new costing method from the Select a Costing Method window. This will default to the To Costing Method field. If you selected Y (Y = Yes) at the Lotted Items field, enter (I) to cost by item or (L) to cost by location in the FZ Type (I/L) field.

5. An Items window will appear listing all the items that match what you requested.

The following columns will appear:

• Item – The item codes that match the costing method selected
• Item Name – The item name
• F – This column indicates whether the listed items are non-lotted or lotted. If there is a Y, the item is a lotted item. If there is a N, the item is a non-lotted item.
• M – This column indicates the listed item’s current costing method:
  • F – FIFO
  • L – LIFO
  • I – Individually Lotted
  • W – Weighted Average
  • S – Standard
  • U – User Defined

Highlight the appropriate items that you want to change the costing method for and press Enter. An asterisk will appear to the left of the item, indicating that the item has been selected. To unselect an item, highlight the item and press Enter, removing the asterisk.

6. When you have completed making all your selections, press F10 to complete this process. Once you press F10, the system will immediately apply your changes.

Security Required : System - Security