When a Part is first entered into Lucity, the user must select one of the following cost methods:
FIFO - The First In First Out cost method uses the cost data from the oldest dated purchase order to apply material costs to related work orders. Once all of the parts from this purchase order are retired, the group of parts from the next oldest purchase order is used.
LIFO - The Last In Last Out cost method works the opposite of the FIFO method. Instead of using the parts from the oldest purchase order, LIFO uses parts from the newest purchase order. Once all the parts from this purchase order are retired, the group of parts from the next most recent purchase order are used.
Average Costing - The Average Costing cost method uses a weighted average unit cost based on purchase order history. As new purchase orders are issued, the average cost is recalculated to reflect the new pricing structure.
Fixed Cost - The Fixed Cost cost method uses the cost specified in the Fixed Cost field.
Cost method notes
Quantity is removed from Inventory through: Work Order disbursal, Part issuing, or the Adjust Inventory Qty (-) toolkit.
A Part History record is active when Currently Qty > 0.
How to change a Part's cost method
in the Parts grid and select Change Cost Method | Selected Record(s). The following pop-up appears: