cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Inventory Value by Lot?

We're new to QB Enterprise and I had a question on inventory valuation when using lot tracking.  

 

Suppose we purchase:

Lot A = 5 units purchased at $1.00

Lot B purchased later with volume discount:

Lot B = 20 units purchased at $.50

 

We now have a significant percentage of our inventory that should be valued at $.50 and a smaller percentage that should be valued at $1.00.  My question is, behind the scenes, will QB average that value over all 25 units, or will it keep the value per lot?

I hope that makes sense! Thanks.

2 Comments
Highlighted
Moderator

Inventory Value by Lot?

Good to see you here in the Community space, RKN.

 

Congratulations on your new QuickBooks Desktop. I'd be happy to share what I know about inventory in QuickBooks.

 

The Average Cost valuation method is what QuickBooks uses to compute the value of your inventory unless you choose FIFO in the Advanced Inventory add-on to Enterprise Solutions. So ideally QuickBooks will keep the value per lot.

 

You can pull up the Inventory Valuation Detail Report to see all inventory items and displays the transactions behind the numbers. The report also tells you:

 

  • How each transaction increased or decreased the quantity
  • The purchase price (on item receipts and bills)
  • How many are available
  • Each item’s average cost, and
  • The asset value.

To pull up the report:

 

  1. Click Reports at the top menu.
  2. On the drop-down list, click Inventory.
  3. Select Inventory Valuation Detail.

Also, you may find these articles helpful:

Hope I helped you get all straightened out today. Let me know if you have other questions. Have a nice day!

Highlighted
Level 15

Inventory Value by Lot?

@RoseMarjorieA - FIFO in the Advanced Inventory add-on to Enterprise Solutions. So ideally QuickBooks will keep the value per lot.

Only IF, the whole lot is purchased at one time, which is not the case in the OP's example. FIFO is average cost per purchase. So the purchase is the key.

 

@RKN

No, QB does not keep value by lot.

Without the advanced inventory add on and FIFO being selected, it is average cost across all purchases

Need to get in touch?

Contact us