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Documentation > MAC-PAC Technical Library > Financial > Inventory Accounting > Programs > Year-End LIFO Valuation Report - Purpose > Year-End LIFO Valuation Report - Calculations

Year-End LIFO Valuation Report - Calculations

IA560E

A.   Housekeeping

1.   See the Common Processing Routines - Housekeeping section of this manual for a general discussion of this subroutine.  Processing specific to this program is described below.

2.   A parameter list is set up to receive the parameters passed from the Inventory Accounting Period-End Close program (IA050E).

3.   Key lists are defined for each file retrieved by the program.

4.   Work fields are defined and program constants are initialized.

5.   The system time is retrieved for reports.

6.   The IA period end parameters (category 460) are retrieved and updated with the current program name.

7.   The default Company Name is retrieved from the entity name record (category 002) on the Reference file (REFERP).  If this record is not found, a message is sent to the system operator, and the program terminates.

8.   A priming read is performed on the Warehouse Description file (IC170M).  If no records are found, an error message is printed on the Year-End LIFO Valuation Error Message report (IA560B), and processing is terminated.

B.   Mainline

1.   The Warehouse Description file (IC170M) is read sequentially until no more records are found.

2.   For each transaction, the current accounting period (category 023) and period end date (category 013) are retrieved from the Reference file (REFERP).  The Company and Location names are retrieved from the entity name record (category 002) on the Reference file.

3.   The current fiscal period number is compared to the year-end period flag.  If they are equal, warehouse balance records for the company/warehouse are processed for year-end LIFO.  If they are not equal, the next warehouse description record is read for date validation.

4.   For each company/warehouse combination, the Warehouse Balance file (IC140M) is read and processed (see step 5 below) until there is a company or warehouse number break.  At the break, the next warehouse description record is read.

5.   For each warehouse balance record, the balances for each inventory part are calculated as follows:

Beginning
Balance Base Price

equals

Previous Year-End On-Hand Quantity

times

Base Price

Ending Balance Base Price

equals

Previous Period-End On-Hand Quantity

times

Base Price

Ending Balance Replacement Cost
 

equals

Previous Period-End On-Hand Quantity

times

Replacement
Cost

      The calculated balances are printed on the Year-End LIFO Valuation report (IA560A) for each inventory part.

6.   The Previous Year-End On-Hand Quantity is updated with the Previous Period-End On-Hand Quantity for each warehouse balance record.

7.   The Ending and Beginning Balance Base Prices are computed for each inventory part within a LIFO pool of a company/warehouse combination using the same calculations as in step 5 above.  The balances are accumulated into LIFO pool totals for each LIFO pool.

8.   When a LIFO pool break occurs, the LIFO Pool Adjustment is calculated as follows:



LIFO Pool Adjustment



equals



Ending Balance Base Price



minus



Beginning Balance Base Price



times

Ending Balance Replacement Cost

                                                                  Ending Balance Base Price

9.   The LIFO Pool Total and Adjustment Costs are printed on the Year-End LIFO Valuation report (IA560A) and are used as a guide for manual adjustments to start-of-year inventory values.

10.  The IA period end parameters (category 460) is retrieved and the program name on the category is updated with blanks to indicate that IA560E processed successfully.