OUR IPIC METHOD LIFO SERVICE BUREAU SERVICES INCLUDE:

• Assignment of proper PPI or CPI codes to detailed inventory reports provided us unless this coding is done by the client.
• Calculation of the weighted average pool indexes using our LIFO-PRO software which automatically downloads the most recent PPI or CPI indexes and performs the necessary math. 
• Calculation of the Sec. 263A costs if you use the simplified production or simplified resale methods.
• Print all LIFO-PRO reports providing comprehensive documentation of calculations in a PDF file email attachment.

The schedules we need from clients to make these calculations include:

• A properly formatted Excel file schedule of year end inventory balances by PPI or CPI category. If LIFO-PRO, Inc. is to make the assignments of the proper PPI or CPI codes, we need the detailed inventory reports in Excel or text file format.
• For the first year we provide service, we need the LIFO layer history schedules as of the last year end. This will not be required in future years since our software automatically creates carryforward LIFO layer history schedules automatically. If your company did not use the LIFO method before and more than a single pool is used, we may need the prior year inventory balances by PPI or CPI category in Excel or text file format. If this breakdown is not available, the prior year inventory totals which will be allocated to the pools on a pro rata basis using the current year end inventory mix by PPI or CPI code.
• The Sec. 263A absorption ratios for the current year on an ongoing basis and these ratios for each prior year for which LIFO layers still remain for the first year.

The cost for our LIFO Service Bureau service varies depending on company size, number of pools, number of PPI or CPI categories and whether we make the assignments of PPI or CPI categories to inventory items. We usually can provide cost estimates once we have a basic understanding of your LIFO situation that can usually be determined in a brief phone conversation. Call us at (402) 330-8573 for a cost estimate.

Non-IPIC METHOD LIFO SERVICE BUREAU SERVICES INCLUDE:

 

We also provide LIFO Service Bureau services for companies using internal indexes (non-IPIC method). Typically these companies use our LIFO-PRO software to perform their calculations. For companies wishing us to do the calculations, the data required are the FIFO inventory balances and the internal indexes for each pool.

CONSULTING SERVICES WE PROVIDE INCLUDE:

• Pool splitting & combination
• Change in LIFO methods to the IPIC method and other LIFO method changes
• Preparation of Form 970 Application to Use LIFO Inventory Method and Form 3115 Application for Change in Accounting Method if necessary. We normally do not prepare these forms if client personnel or their CPAs have the experience necessary to prepare these forms.
• Pre-LIFO method change analysis including pro forma calculations to compare IPIC method LIFO indexes and results to actual LIFO results for the past 10 years.
• Analysis of existing LIFO pools to determine the optimum pooling method.
• Best LIFO practices review for the purpose of providing feedback regarding:
• Whether the tax methods used are those producing maximum tax benefits.
• What the likelihood that controls are sufficient to prevent errors in the existing LIFO calculation spreadsheets and whether errors are present in these spreadsheets.
• Sarbanes-Oxley compliance auditing for publicly held companies.

 

LIFO-PRO PRICING AND CONTACT INFORMATION:

 

LIFO-PRO Software:

The cost of a LIFO-PRO software annual license depends on company size, whether the IPIC method and the 10% method is used and the number of PPI or CPI categories involved. Software maintenance included with all software licenses (at no additional fee) provide for telephone support, periodic program version upgrades and CPI or PPI indexes and BLS Weights updates.

 

Service Bureau Calculations:

LIFO Consulting Services:

Our consulting prices are based on project requirements and are very competitive.

 

Further information about LIFO-PRO software cost or if you have any questions about our fees please contact:

 

LIFO-PRO, Inc.
10730 Pacific Street, Suite 248
Omaha, NE 68114

(402) 330-8573 office

(877) 848-6583 fax

lifopro@lifopro.com