1. Actual Cost (FIFO) – click to advance slide
Inventory Transaction
Cost Inv
Item Transaction Org Org Lot Quantity
A PO Receipt1 OrgA OrgA 1 7
A PO Receipt2 OrgA OrgA 1 8
A PO Receipt3 OrgA OrgA 2 9
A SO Shipment1 OrgA OrgA 2 8
Receipt Cost (based on PO)
Item Transaction Unit Cost
A PO Receipt1 $10
A PO Receipt2 $11
A PO Receipt3 $12
What is the item’s Valuation Structure?
Cost Org + Inventory Org
Inventory Valuation Units
Shipments
Inventory Account
Org A + Org A
SO Shipment1 -8
$10
PO Receipt3 +9
$11
$12
PO Receipt2 +8 -1
$10
PO Receipt1 +7 -7
$11
COGS
$10
$11

2. Actual Cost (FIFO) – click to advance slide
Inventory Transaction
Cost Inv
Item Transaction Org Org Lot Quantity
A PO Receipt1 OrgA OrgA 1 7
A PO Receipt2 OrgA OrgA 1 8
A PO Receipt3 OrgA OrgA 2 9
A SO Shipment1 OrgA OrgA 2 8
Receipt Cost (based on PO)
Item Transaction Unit Cost
A PO Receipt1 $10
A PO Receipt2 $11
A PO Receipt3 $12
What is the item’s Valuation Structure?
Cost Org + Inventory Org + Lot
Inventory Valuation Units
Shipments
Inventory Account
Org A + Org A + Lot1
Org A + Org A + Lot2
SO Shipment1 -8
$10
PO Receipt3 +9
$11 -8
$12
PO Receipt
$12
PO Receipt
COGS
$12