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 Inventory Issue Cost Type Functionality

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Jim Dutton's profile image
Jim Dutton posted 11-30-2022 11:09
We are in the process of implementing Maximo version 7.6, and I have a question related to the functionality of the LIFO issue cost type in the Inventory application.

I was doing some testing related to the various issue cost types for inventory items, and it seems that the functionality for adjusting the inventory costs of the items on invoices by prorating the cost of the standard service items entered or entering a different item cost for an item than was on the purchase order does not work for the LIFO issue cost type. For my average issue cost type items, both of these functions correctly adjusted the cost of the items that had been received into inventory for the purchase order.

If anyone can let me know if this functionality not working for the LIFO issue cost type items is by design, or if we just have something misconfigured, I would appreciate it.

Thanks in advance for any help with this.

Jim
Gina Leonard's profile image
Maximo Certified Gina Leonard
Hi Jim,
This is by design.  LIFO/FIFO is an exact receipt cost of that PO line item's quantity and gets written to the invlifofifocost table at the time of receipt with cost and quantity.   Unlike average cost (invcost table), which will accept invoice cost adjustments, Maximo sets the cost at time of receipt.  If the invoice cost is different from the PO, you need to return the items, revise the PO with the new cost and re-receive the items.  If any of the items were already issued you will only be able to return the items left from that receipt line quantity. When invoicing the line at different cost, you have a choice of putting the difference against the invoice variance account associated with the storeroom (leaving the cost against those items from the original cost on the PO line) or following the return/PO revision process above. You cannot change the cost of a LIFO/FIFO through the inventory or invoice application, on the PO line and receipt.
Hope this helps!
Gina Leonard
Principal Consultant 
Aquitas Solutions
Jim Dutton's profile image
Jim Dutton
Gina,

Thanks for this information. It helps tremendously. I greatly appreciate your help.

Jim Dutton
Battle Lumber Company