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Re: Last purchase price costing method?

by
vloertegel
- 12/17/2014 01:03:24
LIFO (and/FIFO) are not only stock-removal policies but also costing methods:

First-In, First-Out (FIFO):
This method assumes that the first unit making its way into inventory is the first sold. For example, let's say that a bakery produces 200 loaves of bread on Monday at a cost of 1 each, and 200 more on Tuesday at 1.25 each. FIFO states that if the bakery sold 200 loaves on Wednesday, the COGS is 1 per loaf (recorded on the income statement) because that was the cost of each of the first loaves in inventory. The 1.25 loaves would be allocated to ending inventory (appears on the balance sheet).
 

Last-In, First-Out (LIFO):
This method assumes that the last unit making its way into inventory is sold first. The older inventory, therefore, is left over at the end of the accounting period. For the 200 loaves sold on Wednesday, the same bakery would assign 1.25 per loaf to Cost of Goods Sold (COGS), while the remaining 1 loaves would be used to calculate the value of inventory at the end of the period.
 



On Wed, Dec 17, 2014 at 6:18 AM, OpenERP Master <openerpmaster@gmail.com> wrote:
Hi,

I do not understand, could you please clarify? I see there is a costing method available if you select it from the config, but it is only Average cost.

What does Last in first out have to do with updating a purchase price on a product?

On Tue, Dec 16, 2014 at 10:26 PM, Mihai FEKETE <Mihai.FEKETE@forbiom.eu> wrote:

Hi...now you can choose on product category or stock location...and last purchase price is LIFO...last in first out...

Mihai Fekete
Forest and Biomass Services Romania
Sent from Samsung Mobile.


-------- Original message --------
From: OpenERP Master
Date:17/12/2014 04:05 (GMT+02:00)
To: Community
Subject: Re: Last purchase price costing method?

To be clear I am looking for (Last Purchase Price) costing method

On Tue, Dec 16, 2014 at 6:02 PM, OpenERP Master <openerpmaster@gmail.com> wrote:
In previous versions of OpenERP there was a costing method defined on product. I don't see this.

Is there default functionality that will update cost price on product every time its purchased/received?


Just curious, if not ill just create it..


Thanks!

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