Conversion Of Inventory From Fifo To Average Costing
One of our customers, an electronic equipment distributor wanted to convert some inventory item costing methods from FIFO to average costing. The items in question had been created in the past, before average costing became the standard for the company.
NOTE: it is not possible to directly change the costing method on an item once it has been created.
GURUS Solutions performed this conversion using data migration. The operation consisted of:
- Obtaining counts and values for all items that needed to be converted (some of these items were used in kits) and the client used the multi-inventory location feature
- Rename the items with the wrong costing method
- Create new items with the correct costing method
- Remove the inventory from the old item
- Increase inventory of the new items in the proper location
- Perform an array of validations to confirm that the inventory value and quantities were unchanged following the conversion
The client needed to change the costing method for an important quantity of items. Because this is not directly possible in NetSuite, a manual processing of this data would have required weeks of work and have a high risk of manual errors and omissions.
GURUS Solutions completed the conversion on the production system during system off-hours (weekend). The solution consisted of some scripts and searches to extract and prepare the data and a csv import to load the data.