My client has an requirement-- They are following FIFO basis of costing. Please follow the following example: Item A – 20 units in stock (comprises of 12 units @Rs.10 + 8units @Rs.12) on 1.10.2009
Now the client issued 20 units in the following way - (POSTED IN NAV thru Item Journal - Neg.Adjustment)
Issue Date Qty. issued
Now as per FIFO method of costing, the cost of issue of 14 units (on 14.10.2009) will be 12 units @Rs.10 + 2 units @ Rs.12 whereas balance 6 units will be valued at cost @ Rs.12.
Now what happens- on 5.10.2009 there is a purchase of the above item (another say 4 units) @ Rs.9 which our client forgets to post in NAV. On 7.10.2009, Client posted the purchase giving posting date as 5.10.2009 (i.e. back dated entry).
Now if the client runs Adjust Cost Item Entries batch Job, will he get the correct cost valuation?