It is related to how you setup your inventory costing method. see the inventory status  for your costing method and then check the help for the ways to work with the COSTs related to your method.

Vince

Hi Vince, we are a FIFO but I am having difficulties finding out how to perform this task.

From the Help section of Businessworks 2023

Basic terms & costing methods

Each physical good that you sell or include with a service is called a part. The amount you pay for a part is the cost, and the amount you charge your customers for a part is the price. To expedite your sales, you may need to keep some parts in stock. All together, the parts that you have in stock make up your inventory. (For more definitions, see How I/C & O/E terms differ.)

Using the available cost information, the system can compute the value of your inventory by any of four costing methods:

• Standard costing: An arbitrary figure you assign to a part indicating what its value should be.

• Average costing: If you use average costing, the system calculates a new unit cost each time parts are received.

• First-in, first-out (FIFO): Under FIFO, parts are received and issued at their actual cost, and the oldest parts are assumed to be issued first.

• Last-in, first-out (LIFO): Under LIFO, parts are received and issued at their actual cost, and the newest parts (most recently received) are assumed to be issued first.

We recommend you discuss costing methods with your accountant before deciding on the costing method you use because the way you value your inventory can have a dramatic impact on your financial reports.

/C & O/E terms defined:
Costing methods

Costing methods (LIFO, FIFO, Standard, and Average) are different ways to compute the value (or cost) of your inventory on an ongoing basis. Let’s use the following example to illustrate each costing method:

For example, we create the part, Widgets, and enter an initial cost of 5.00 and on-hand quantity of 0. We then receive in Widgets as shown below, but do not yet issue any out.

• LIFO (Last In First Out): Parts are received and issued at their actual cost. The newest parts (last in) are assumed to be issued first (first out). Using the example above, when we issue out a Widget, it will be at a cost of $3.00, since that was the cost of the last Widget received.

• FIFO (First In First Out): Parts are received and issued at their actual cost. The oldest parts (first in) are assumed to be issued first (first out). Using the example above, when we issue out a Widget, it will be at a cost of $1.00, since that was the cost of the first Widget received.

• Standard: An arbitrary figure is assigned to a part indicating what its value should be. This value may be different from the actual cost you paid. In our example, the cost at which the part will be issued is the cost we entered under Maintain Parts, $5.00. (When parts are received in at a different cost than the one shown in Maintain Parts, the difference is posted to the Inventory Purchase Price Variance account you defined in the Maintain Product Lines for the product line to which this part belongs.)

• Average: The cost of the part is calculated each time a new part is received. The cost of the purchased units is added to the value of the current stock on hand. The sum is then divided by the total number of units. The result is the average cost of each unit. In our example, the cost of the part being issued will be $1.70 (5*1.00 + 3*2.00 + 2*3.00 = 17.00 / 10 = 1.7)

Danielle Bergeron-

Changing the unit cost on the part relates to your costing method and the transactions you recorded for the unit cost for the part.   They system maintains the part’s unit cost based on your costing method – in your case FIFO.  What displays in Maintain Parts for FIFO is just an average cost based on the quantity and cost recorded on transactions performed for the part.

Generally, if the cost was entered incorrectly on a purchase order receipt, use the Receipt Adjustment in IC, Transactions, Receipt Adjustment

If the total cost of the part is incorrect and individual transactions cannot be corrected and you just need to correct the cost going forward, please see enclosed article on adjustments you can make to update the part’s unit cost.

Please refer to this article on options to change the unit cost of a part:  Change the unit cost of a part

Otherwise, if you have more questions on this and would like to speak with a support analyst, I would  suggest working with the Live Chat team. 

To get to Live Chat in the program, just go to Help, Live Chat or go to www.sage.com/resouces

Sincerely,

Coleen