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Inventory Cost Methods
Acctivate supports multiple different cost methods for inventory accounting. Check out this article for links to our docs page about the different cost methods Acctivate uses.
Acctivate is a perpetual inventory system using a continuous calculation for the inventory valuation and cost of goods sold. The cost for each transaction is calculated using all transactions prior to and including the specific transaction date. Therefore, multiple transactions in a given accounting period may be calculated at different unit costs. Acctivate supports Actual, FIFO, LIFO, Standard and average costing.
Multiple accounting methods are supported. The Cost Method is defined for each Inventoried product. For example, you may use Actual Cost (Specific Identity) for lot and serial-numbered and Average Cost for standard items.
Note: Changes to a different costing basis may have a material effect on your financial statements and your tax return. Changes may require prior approval by your tax authority. For example, the IRS requires notification for US businesses. It is strongly recommended that you consult your CPA or tax advisor when selecting or adjusting your cost accounting method(s).
For specific information regarding the seperate cost methods, please click the links below: