The fiscal LIFO functionality enables you to create a yearly report that declares the value of your inventory. The report can be used as a foundation for a tax report.

To calculate fiscal LIFO, all items in stock must be set up to be included in the fiscal LIFO calculation. However, you can exclude individual items.

The calculation for the final yearly fiscal LIFO report is set up in a journal and the report is printed from there. You can also create several internal reports for your own reference. These can serve as drafts for the final report.

Various methods can be employed to control how the inventory is assessed and, therefore, the contents of the yearly report. For example, you can set the value to normal value, or you can include work in progress in the calculation. For more information, see (ITA) About the calculation engine.

Fiscal LIFO calculation

If you want to apply the fiscal LIFO functionality, all items listed in the form must be included in a fiscal LIFO reporting group. If you want to exclude items from the calculation, you must specify each item to be excluded.

Exclude an item from fiscal LIFO calculation

  1. Click > .

  2. Select an item, and then click the tab.

  3. Select the check box.

Tip Tip

Items of the type are automatically created when this option selected.

Inventory value

The yearly average value of an inventory item is calculated as the financial value of purchased plus produced items divided by the current quantity.

If the stock from previous years has decreased, the value of the items remaining in stock is calculated according to the LIFO principle.

Example of LIFO principle applied for one item group


Number of items

Total value



100 (EUR 10 per item)



200 (EUR 20 per item)



100 (EUR 20 per item)

At the start of 2002 you have 30 items in stock. By the end of the year you have 9 items left. The amount of stock has decreased by 21 items.

The decrease in stock is deducted in the following order, where items most recently added to the stock are deducted first.


Items deducted


5 (EUR 20 per item)


15 (EUR 20 per item)


1 (EUR 10 per item)

By the end of 2002 the value of the inventory is 9 X 10 = EUR 90. That is, the 9 remaining items in stock have appreciated by EUR 10 per item, which is the value registered for the items in 1999.

See Also