LIFO Software

Features
- In-house LIFO calculation & documentation/reporting automation
- Automates both aspects of the LIFO calculation, including:
  - Inflation calculation (front end)
  - LIFO reserve calculation, including LIFO layer history, LIFO inventory, reserve & expense (income) calculation
- Internal index module includes a complete range of features & settings, including:
  - Double-extension (current vs. base year cost comparison) or link-chain (current vs. prior year cost comparison)
  - New item treatment, including new item cost reconstruction
  - Outliers & exceptions identification & treatment
  - Analysis & statistics reports, including inflation index calculation breakouts by product hierarchy (class)
  - Loading multiple data input files and/or sheets
  - Single or multiple pool calculation
- External index module (IPIC module) includes a complete range of features & settings, including:
  - BLS table type (CPI or PPI)
  - Current & prior year appropriate month selection
  - Preliminary or final indexes
  - 10% method or non 10% method groupings
  - IPIC method or non-IPIC pooling method
  - Current vs. prior year balances by BLS category comparator report
  - Automated interim estimates using year to date inflation & prior year balances by BLS category
- All reports can be printed/saved as Adobe PDF or Excel files
- Can be installed on & be used by an unlimited number of users/devices
- Can be installed on-premise & accessed via LIFOPro’s private cloud
- Includes unlimited training & support
Benefits
- Minimize time spent in-house managing LIFO calculation
- Guarantee calculation accuracy & eliminate errors
- Eliminate error-prone spreadsheet formulas & Excel schedules & replace them with comprehensive, user-friendly reports
- Simplify calculation policies/procedures & reporting
- Increase reporting transparency & understandability
- Easily & quickly make interim estimates & ad-hoc projections
- Reduce reliance on IT department
How it Works: First-Time Setup
How it Works: Calculation & Reporting
How it Works: Inflation Calculation Modules
How it Works: Reporting Module
LIFOPro Software Reports
- Inflation index calculation (front-end reports)
  - Internal Indexes
    - Current year index calculation summary (Report 27)
    - Current year index calculation detail (Reports 27a & 27b)
    - Missing item cost exceptions detail (Report 28a)
    - Price change outliers detail (Report 28b)
    - Data input statistics (Report 29)
    - Inflation by product hierarchy (Report 30)
  - External Indexes (IPIC CPI/PPI)
    - Current year index calculation summary (Report 23S)
    - Current year index calculation detail (Report 23)
    - Category inflation index calculation detail (Report 24)
    - Discontinued/replaced BLS categories (Report 25)
    - IPIC pooling method 5% test proof (Report 26)
- LIFO reserve calculation (back-end reports)
  - Current year LIFO calculation summary (Report 18)
  - Current year LIFO reserve calculation proof (Report 18a)
  - LIFO inventory history summary (Report 16)
  - LIFO layer history proof (Report 16a)
  - LIFO inventory history detail (Report 17)
  - LIFO expense components (Report 19)
  - LIFO reserve by layer (Report 15)
- Supplemental reports
  - Projections (Report 1)
  - Consolidated reports for multiple entities
  - Reports including Sec. 263A UNICAP costs
  - IPIC CPI/PPI comparator report
Pricing & Terms
Service Organization Control (SOC) Report
- Independent CPA firm issues SOC 1 Type 2 report to LIFO-PRO annually (formerly known as SAS 70 Report)
- Prepared in accordance with AT-C section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting
- Report on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design and operating effectiveness of the controls to achieve the related control objectives included in the description throughout a specified period
- Provides clients & their CPA firms our independent auditor’s annual report on controls & service procedures in place & software used by LIFOPro
- Providing auditors with this report could reduce substantive testing related to LIFO calculation
- Copy of this report is available to LIFOPro software users & their auditors/CPA firms
How to Get Started
- Use one of the two options to receive fee quote or complimentary software trial
  - Submit request form online at LIFOPro’s website: LIFOPro Software Fee Quote & Trial Request Form
  - Send the following required documentation to LIFOPro to receive fee quote or complimentary software trial:
    - LIFO layer history schedule from the last two periods closed (aka LIFO carryforward schedule)
    - Inflation index calculation documentation from last period closed (aka item detail, stock status or inventory valuation report)
    - See our documentation request listing here: LIFOPro Software Fee Quote & Software Trial Document Request
    - Send to lifopro@lifopro.com or upload here: https://spaces.hightail.com/uplink/LIFO-PRO
- LIFOPro will email you fee quote within 2-3 business days of receiving above documentation
- LIFOPro will also email a sample set of LIFOPro reports using the results of your company’s last period closed
- If requested, LIFOPro will also send you software database files to trial the software using your company’s actual historical calculation data
Learn More

LIFOPro Software Overview Slide Deck
LIFOPro Software Demo – Internal Indexes
LIFOPro Software Demo – External Indexes (IPIC Method)

CPA Firm Partnership Playbook

2024 Top LIFO Election Candidates Guide

Sec. 473 Relief Estimate Request Form

Auto Dealer IPIC LIFO Case Study

2024 LIFO Opportunities & Strategies Guide

How LIFO Works: A Beginner’s Guide to LIFO

How to Identify Clients that are Good LIFO Election Candidates

How to Easily Implement LIFO

Complimentary Interim LIFO Estimate Request Form

Best LIFO Practices & Review

Auto Dealer LIFO Case Study

LIFO Election Benefit Analysis

Downloads

Get information about LIFO-PRO’s offerings, valuable guides & white papers & sample LIFO reports!

IPIC LIFO Guide

Get educated on the Inventory Price Index Computation (IPIC) method, including the origins, advantages & disadvantages, calculation procedures, options & much more!

Service Organization Control Report

Learn how LIFO-PRO receives an annual review of our policies & procedures to provide required assurances to our clients.

LIFO Tax Benefit Calculator

Calculate the potential tax savings from using LIFO & determine your company’s historical inflation percentages!

Secure File Upload Portal

Here you can send us all files needed for us to seamlessly give you the best LIFO results possible. We look forward to working with you!

CPA Firm LIFO Opportunities & Training Guide

Learn about LIFO opportunities abound for CPA firms, how to increase the scope of your LIFO offerings & learn how to easily identify good LIFO candidates!

Interim Estimate Options

Learn how to easily make interim LIFO estimates manually or within our software!

Non-disclosure Agreement Request Form

Get a NDA generated electronically in less than a minute using LIFO-PRO’s online request form page & avoid having to print, sign & scan a paper NDA!

IPIC LIFO Resources

Learn how the IPIC LIFO Method works, find valuable Bureau of Labor Statistics (BLS) links and stay up to date on all changes related to the IPIC Method!

LIFO Success Stories

Learn about LIFOPro’s past roles in partnering with companies & CPA firms to deliver great value by finding solutions to the most challenging LIFO issues!

IPIC LIFO Overview

The Inventory Price Index Computation (IPIC) method allows taxpayers to use published external indexes to calculate inflation for the purpose of valuing LIFO inventories.

Authoritative Guidance & LIFO Methods

Your comprehensive resource for authoritative LIFO guidance, LIFO election requirements, and method alternatives!

Supermarket Physical Count Procedures

Find helpful information on how IRS regulations effect grocery LIFO Count Procedures for CPI & PPI taxpayers on our Supermarket Count Procedures page.

Special Challenges for Supermarkets

Supermarkets face LIFO calculation issues unique to the industry. Find out why & answers to how they are dealt with Special Challenges for Supermarkets page.

Why the Double-extension LIFO Index Calculation Method is Unreliable

Facts describing why the double-extension LIFO index calculation method is unreliable and examples proving how this method creates unpredictable results.

LIFO Training & Audit Guide

The LIFO Inventory Training Basics & Audit Guide provides detailed LIFO calculation steps, LIFO documentation procedures, internal controls & audit best practices.

Addition of Services Table 9 Codes

Find recent important changes & BLS addition of Table 9 Wherever-provided Services & Construction PPI Indexes & Important Change in PPI Code Structure page.

CPI Category Updates

Find information on CPI Category Changes & Bureau of Labor Statistics Consumer Price Index update information such as new medical commodity codes here!

PPI Category Updates

Learn IRS Regulations Requirements for missing PPI Indexes, procedures for reassigning discontinued PPI Categories at LIFO-PRO’s PPI Category Changes page.

Producer Price Index Usage by Supermarkets to Increase Tax Deferral

Learn how drugs, non-foods & food/beverage indexes cause increase LIFO tax benefits at our PPI Index Usage by Supermarkets to Increase Tax Deferral page.

Consumer/Producer Price Index Inflation History

Get the most up to date Bureau of Labor Statistics Consumer & Producer Price Index inflation data from LIFOPro!

IPIC LIFO Advantages

Switching from the double-extension to link-chain method? Want to achieve higher possible inflation indexes? Learn more at the IPIC LIFO Advantages page.

LIFO Repeal Updates

Get the latest LIFO repeal updates including the latest news on corporate tax reform at LIFO-PRO’s LIFO Repeal Updates page.

Videos

LIFO-PRO Company Overview – Quick 1 minute video explaining LIFO-PRO’s service and software offerings.

Request Forms Page

Request a software trial, LIFO Election Benefit Analysis, Best LIFO Practices Methods Review or cost estimate. All of our requests are complimentary & free of obligation!

FAQ’s

View some of our frequently asked questions to learn more about LIFO

LIFO Glossary

Accounting and financial professionals who work with LIFO need to understand the jargon associated with LIFO. Below are a number of LIFO-related terms.

What Makes a Good LIFO Candidate?

Get answers to who should use the LIFO method, how much LIFO may benefit your company or client & good LIFO candidates by industry & principal business activity along with historical inflation data.

Why Use LIFO & How it Works

Hundreds of companies & CPA firms utilize our LIFO outsourcing solutions or the LIFO-PRO software for turnkey LIFO solutions.

Software

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Resources