Learn how to change the inventory valuation method.

The following procedure will guide you through the process of changing the type of inventory valuation method (for example, LIFO) you are currently using.

1. Perform a Physical Inventory.
2. Once you have performed a physical inventory, make sure the inventory is accurate by reconciling what's entered in the software with what's actually on hand. Reconciling Inventory Discrepancies after an Inventory Count
3. On the main Inventory menu, click Maintenance > Category.
4. At the Category code field, press F4 to search and select the category to which you want to update the valuation method. Press Enter.
5. At the Costing method field, use the drop-down list to select the new costing method you want applied to the category. Options include: LIFO, FIFO, Average.
6. In the remaining fields, make any necessary changes.
7. Repeat steps 5 – 7 for each and every category in the software. When you have completed the category update, click OK to return to the main menu.
8. Proceed with a new physical inventory to record your starting quantities. Perform a Physical Inventory