Hi all,
We have had our accounts prepared and looking at the numbers need to do a write down of stock.
All our inventory valuation is done via FIFO.
1. We ran a report of old inventory using the inventory audit report upto 30/6/09 (last day of our financial year).
2. Using this, we have a valuation of say $100k which we want to write down the old stock by.
3. However, if we go into inventory revaluation report, it shows stock/quantities at current status, and gives a message saying item cost will become negative if we proceed (as a few items have sold between 30/6 and today).
Since both now and in the future, stock write downs will be made probably a few weeks after the end of the financial year (so P&L etc can be prepared), how do we get around this problem? Ideally we want to be able to revalue the old stock at the 30/6 each year.
Thanks,
Rajiv