Weighted Average Cost valuation method
Last-in First-out valuation method
About inventory valuation methods
Note: This functionality is available only if you have the Inventory Add-On Module.
Important! We recommend that you consult with your accountant and tax advisor before selecting an inventory valuation method in Sage 100 Contractor.
Inventory valuation methods handle the accounting aspects of an inventory account. Your inventory valuation method determines the value of used inventory, which impacts the inventory general ledger account. The actual physical movement of inventory is not dictated by your inventory valuation method selection. In other words, inventory parts can be used in any order regardless of the valuation method used.
Sage 100 Contractor provides three different inventory valuation methods:
- Weighted Average Cost (WAC)
- Last-in First-out (LIFO)
- First-in First-out (FIFO)
Note: Inventory allocations always use the weighted average cost for items, regardless of the inventory valuation method specified for the general ledger. If you use the LIFO or FIFO valuation method for general ledger, you can print the General Ledger Cost Comparison report (using the 2-3 Income Statement menu) to view inventory variances created by allocations. For more information, see About inventory variance reconciliation.