Annual LIFO Enhancement for Advanced Stock Valuation

8/7/2019 Annual LIFO Enhancement for Advanced Stock Valuation

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Solution ID: 200782176 Date Last Revised: 12/27/2004

Title: Annual LIFO Enhancement for

Advanced Stock Valuation Abstract: The Annual LIFO enhancement to Advanced Stock Valuation will be included

in Update 3 of EnterpriseOne Xe. This document contains information on what has

changed to incorporate this enhancement.

Table of Contents

Overview

Stock Valuation Constants (P39042)

'Annual' Period Build (R39120)'Annual' G/L Update (R39130)

'Annual' Layered Fiscal (R39220)

'Normal Value' Cost (P3908)

Overview

• An Italian Fiscal Requirement.

• Stock Valuation Period Build (R39120) should be considered as all transactions

up to an “as of” date

o Based on G/L Date in F39120W.o Allows selection of a larger range of records.

• Average cost must be calculated on an annual basis.

• Users must be able to run G/L update only once per year.

• Update must have the option of NOT creating G/L entries.

o This allows Manual Journal Entries for the entire valuation rather than just

the difference.

o G/L update still needs to be run, to update other files which is only valid in

Final Mode.

o In annual mode, Stock Valuation G/L Update (R39130) can ONLY run at

the end of the year. Error will occur if trying to run this in final mode at a

time other than end of year.• New Annual Fiscal Layer Report (R39220) – summarizes layers in a report

format.

• Normal cost.

o Provide the ability to record and report using Normal Cost.

o This normal cost will be used by the Annual Fiscal Layer Report, for

reporting purposes ONLY.

o This cost is substituted for the valuation cost.



o Specific cost defined when there is a decrease in value of goods.

o Same as Replacement Cost. In Xe, user must choose to use either

Replacement Cost OR Normal Cost.

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Stock Valuation Constants (P39042)

Processing Mode:

• Added a Processing Mode flag to identify how a company's stock valuation

records will be processed.

• 'Period' or 'Annual' mode.

• Default processing mode is 'Period'.



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'Annual' Period Build (R39120)

• Designed for LIFO valuation method calculations.

• Clear and Restart processing option must be "on" when processing records for

'Annual' mode.• Clears and reprocesses all stock valuation records within the year up to the "As Of

Date" based on the G/L Date.

• Only one Valuation Period (F39061) record is created for each year processed.Annual mode is just one "period" per year.

Processing Option Changes:

• Changed date to process to an "As Of" date. This is the As Of transaction date.

• Clear and Restart will clear all previously processed transactions and process

records up to the 'As Of' date. Annual mode must be turn 'on'.



'Annual' Period Build Pros/Cons

• Process can be run multiple times within the year without running G/L Update for each period.

• Calculates a more accurate Average Unit Cost with which to value the stock.• Only at year end are stock values considered final.

• Performance will be impacted due to processing transactions for an entire year.

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'Annual' G/L Update (R39130)

• Only run once per year in final mode.

•

Cannot write G/L entries unless in the last period of the year being processed. Anerror will be issued if not in the last period.

• LIFO methods will not have any reversing entries.

New Processing Option:



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'Annual' Layered Fiscal (R39220)

• This is a new UBE that was designed for companies running 'Annual' LIFO

valuation methods.

• The fiscal report summarizes the Stock Valuation layer records (R39062) for a

company.

• Option to override Average Unit Cost with a 'Normal Value' cost.

• Information is used for forecasting and creating manual journal entries.



Processing Options:

• G/L Date - is the closing date of the last year to be printed.

• Normal Cost - used to override the average unit cost when the cost of an item has

decreased.

NOTE: The G/L date needs to be the same as the Effective Through date of the Normal

Cost.



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'Normal Value' Cost (P3908)

• This functionality is used when an item has considerable unit cost changescompared to the previous years cost.

• The 'Normal Value' is lower than the average unit cost calculated using LIFO.

• Defined using the Item Pool Cost Maintenance (P3908) application.

• Cannot use Replacement Cost (used when inventory goes negative) and NormalCost at the same time.



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Annual LIFO Enhancement for Advanced Stock Valuation

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