Bob Richardson

Automate All Aspects of LIFO Calculations in a Few Clicks of a Button

The LIFOPro team is proud to announce that the latest release of the LIFOPro software now includes a robust Internal Index Module that completely automates all aspects of dollar-value internal index LIFO calculations. With this new release, users can complete both the inflation index (front end) & LIFO (back end) components required to complete internal index calculations. Prior to the latest software version being released, the LIFOPro software only automated the back-end of internal index LIFO calculations, meaning users were required to complete the front end component manually outside of the software & plug those results into the software’s back-end input screen in order to automatically complete the LIFO reserve calculation, documentation & reporting tasks within LIFOPro. With the development & release of the Internal Index Module, users can now completely automate & greatly simplify what many consider to be the most challenging & time-consuming component of dollar-value internal index LIFO calculations. With the software’s powerful new module, users enjoy the ease of completing both the front & back end of internal index LIFO calculations within a few simple button clicks.

Related: Contrasting the Front & Back End Components of Dollar-value LIFO Calculations

New vs. Old LIFOPro Software Version Features Comparison

Feature or Calculation Step New Version Old Version
Load item cost Excel data input sheet(s)/file(s) for front end calculation
Eliminate spreadsheets or database reports used to manually calculate your LIFO reserve & replace it with a completely self-contained calculation & reporting module. Simply load your item cost data file(s) into the software & it does the rest!
Automatically apply user-defined new item treatment settings
Set prior or base year item cost equal to CY item cost or exclude new items from the index calculation (aka setting new item CY index = to non-new item CY index)
Automatically reconstruct new item PY/base year cost w/ inflation of similar preexisting items
Calculates the CY index for preexisting items by class, sets the CY index for new items equal to the index of all preexisting items of its matching class & divides the CY item cost by the CY index to compute the PY or base year item cost! (class is any user defined grouping such as stage of production, material type, product groups, categories, lines or profit centers)
Automatically lookup PY item cost using PY calculation data stored in software
Users with accounting systems that maintain CY item cost but not PY cost need not worry because the LIFOPro software can automatically look up PY costs by matching the item number or description of your current year data input sheet(s) to the internal index calculation detail report created by the software from your prior year end calculation!
Automatically apply user-defined exceptions & outlier treatment settings
Automatically include or exclude items meeting user-defined criteria or exceeding CY vs. PY price change & streamline time-consuming analysis tasks! Includes flagging and/or excluding outliers based on user-defined CY vs. PY cost percent or dollar amount change thresholds.
Automatically complete current year or cumulative index calculation (front end)
Complete front end LIFO calculations within a few button clicks! Simply load your item cost data, specify your settings, select the calculate button, and the software does the rest! Users can also enter their general ledger inventory balances at cost within the internal index module screen after the index calculation completes if your extended cost total does not tie to your GL balances.
Generate complete set of internal index calculation reports
Includes summary report showing both front & back end results, detail reports showing comprehensive current year index calculation documentation & complete range of analysis reports including exceptions, outliers, statistics & inflation by class reports!
Automate back end of calc. (LIFO inventory/reserve) & save results to software database file
Upon completing the front end of the calculation & closing the year end, the software automatically saves the CY results to its LIFO database file containing all prior period calculation documentation. The user is returned to the Main Menu screen & can access a complete set of back end reports!
View, print or save over a dozen different reports as Excel/PDF
All reports can be printed or saved as Adobe PDF or Excel files. Incudes current year only, all periods, pool detail & all pools combined summary formats.
Create consolidated reports for multiple entities or separate Book vs. Tax calculations
Companies that are a consolidated group with multiple entities or subsidiaries on LIFO can easily manage separate LIFO calculations made within the software & combine the results within a couple clicks of the button! Stop manually combining the results on your own in Excel & use our robust reporting platform! Also works for companies with separate Book & Tax LIFO calculations
Automate all levels of interim LIFO estimates & ad-hoc projections
Interim LIFO estimates are just as easy as actual year end calculations! Automate ad-hoc projections & calculate a vast range of LIFO expense (income) values that would result from a user-defined range of inventory balances & inflation indexes for the next period to be closed!

Key Internal Index Module Benefits

  • Save time working with LIFO by using the most efficient option available
  • Automate front & back end of LIFO calculation within a single program
  • Replace complicated, time-consuming analysis with automated new item, exceptions & outlier treatment settings
  • Simplify quality control procedures by increasing reliance on software & reducing reliance on human judgement & complicated Excel formulas
  • Eliminate error-prone manual calculation schedules & spreadsheets
  • Replace complicated, time consuming procedures with automated modules
  • Minimize control risk related to LIFO calculations, maximize LIFO calculation accuracy & eliminate errors

Internal Index Module Demo: Calculation, Estimates & Projections

LIFOPro Software Reports

Learn More About The LIFOPro Software
LIFOPro Software Demo PDF File
Request a Free 90-day LIFOPro Software Trial or Cost Estimate