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LIFO Service Engagements


LIFO-PRO scales our service engagements to fit within every company and CPA’s desired level of service and cost. Our service engagements are flexible and tailored to meet the exact specifications of our clients.


How It Works


  1. LIFO Inventory Data Setup- LIFO-PRO compiles inventory data/files received from client
  2. LIFO Calculations- LIFO-PRO performs the year end LIFO calculation in our automated LIFO-PRO software
  3. LIFO Documentation- LIFO calculation data is automatically documented and year end is closed in the LIFO-PRO software
  4. LIFO Reporting- LIFO-PRO software automatically creates year end LIFO reports
  5. Electronic LIFO Report Delivery- Complete set of LIFO Reports are delivered electronically (as PDF and/or excel file)

IPIC LIFO Calculation Services


LIFO-PRO offers two types of IPIC LIFO Calculation Services for companies that use an externally-provided inflation measurement source (BLS CPI/PPI indexes):

  1. IPIC LIFO calculation services & BLS CPI/PPI category assignment
  2. IPIC LIFO calculation services using client-assigned BLS CPI/PPI categories

LIFO-PRO’s IPIC LIFO Calculation Service Engagement procedures are as follows:

  • LIFO-PRO transfers company inventory balances and BLS CPI/PPI category assignments into a standard LIFO-PRO software excel template file
  • IPIC LIFO calculations completed using LIFO-PRO software’s automated IPIC module
  • LIFO-PRO reviews LIFO calculation results and closes year end in LIFO-PRO software
  • LIFO reports compiled using the LIFO-PRO software’s automated reporting module
  • Clientele are sent LIFO-PRO Report file(s) electronically

View sample IPIC LIFO service engagement letters by clicking below:


Sample IPIC LIFO Calculation Services & BLS Category Assignment Engagement Letter
Sample IPIC LIFO Calculation Services Using Company Assigned BLS Categories Engagement Letter

Internal Index LIFO Calculation Services


LIFO-PRO offers two types of LIFO calculation services for companies that use an internal index inflation measurement source:

  1. Internal index LIFO calculation services & current year index computationn
  2. Internal index LIFO calculation services using client-provided current-year indexes & Current-Year Cost inventory balances

LIFO-PRO’s internal index LIFO calculation service engagement procedures are as follows:

  • LIFO-PRO enters Current-Year Cost inventory balance(s) and current year indexes into the LIFO-PRO software
  • LIFO calculations completed using LIFO-PRO software’s automated internal index module
  • LIFO-PRO reviews LIFO calculation results and closes year end in LIFO-PRO software
  • LIFO reports compiled using the LIFO-PRO software’s automated reporting module
  • Clientele are sent LIFO-PRO Report file(s) electronically

View sample internal index LIFO service engagement letters by clicking below:


Sample Internal Index LIFO Calculation Services Using Company Provided Index & Balance Engagement Letter
Sample Internal Index LIFO Calculation Services & Current Year Index Computation Engagement Letter

LIFO Service Engagements Terms & Conditions


  1. LIFO-PRO provides services on an annual basis; no multi-year contracts are required
  2. LIFO-PRO’s service costs will remain fixed for at least three years
  3. LIFO-PRO will provide separate book & tax LIFO reports if book/tax methods are different
  4. LIFO-PRO will calculate Sec. 263A UNICAP costs at no additional cost
  5. LIFO-PRO will provide up to three LIFO projections at no additional cost

How to Get Started


LIFO-PRO service engagements may be arranged using one or more of the options provided below:

  1. Request a cost estimate
  2. Request a formal LIFO services engagement letter
  3. Send one or more of the following inventory files to LIFO-PRO:
    1. Inventory file containing a detailed or summarized listing of inventory items including:
      1. Item number
      2. Item description
      3. Inventory balances
      4. Category designations (if inventory items are classified by category types, departments, finelines, etc.)
    2. LIFO layer history carryforward schedule

Use the links below to request a cost estimate, LIFO services engagement or to send files to LIFO-PRO


Request LIFO Service Cost Estimate
Request LIFO Services Engagement Letter
Send Files to LIFO-PRO

Summary of Inventory Data Required by LIFO Service Engagement Type


LIFO services are completed by LIFO-PRO by receiving data sent by companies and CPA’s. The table below lists the type of inventory data needing to be sent to LIFO-PRO for each type of LIFO service.

LIFO Service

LIFO Documentation & Inventory Data Required

Required First Year or Annually

All LIFO Calculation Services LIFO Layer History Carryforward Schedule First Year
IPIC LIFO Calculation Services & BLS CPI/PPI Category Assignments Inventory file containing:

  1. Item number
  2. Item description
  3. Quantity on hand and unit cost OR extended cost inventory balances
  4. Any applicable classification designations (class, department, or fineline categorizations)
Annually
IPIC LIFO Calculation Services Using Client-Assigned BLS CPI/PPI Categories

Inventory file containing:

  1. Detailed or summarized listing of inventory items and/or balances
  2. Detailed or summarized listing of BLS category assignments made to items and/or balances
Annually
Internal Index LIFO Calculation Services & Current Year Index Computation

Inventory file containing:

  1. Item Number
  2. Item Description
  3. Current Year Item quantity
  4. Current Year Item Unit Cost
  5. Prior Year Item Unit Cost
Annually
Internal Index LIFO Calculation Services Using Client-Provided Current-Year Indexes and Current-Year Cost Inventory Balances  Inventory file containing:

  1. Current-year cost year end inventory balance(s)
  2. Current year index(es)
Annually
BLS CPI/PPI Category Assignment Services (excluding LIFO calculation services) Inventory file containing:

  1. Item number
  2. Item description
  3. Quantity on hand and unit cost OR extended cost inventory balances
  4. Any applicable classification designations (class, department, or fineline categorizations)
Annually

LIFO Inventory File Format Requirements by Service Type


IPIC LIFO Calculation Services & BLS CPI/PPI Category Assignment Inventory File Requirements


LIFO-PRO is sent a client-furnished inventory file containing the following data:

  • Item Number
  • Item Description
  • Extended cost inventory balances (or quantity on hand and unit costs)
  • Category designations (if any category organization is utilized)

Example Inventory File Format for IPIC LIFO Calculation Services & BLS CPI/PPI Category Assignments


Item #Vendor #Vendor NameItem DescriptionExtended Cost
13 780 Global Village Imports, Llc Monopolowa Vodka 4,030
14 780 Global Village Imports, Llc Monopolowa Vodka 1,003
104 500 Vranken America Pommery Brut Royal 29
105 500 Vranken America Pommery Brut Royal 2,294
116 780 Global Village Imports, Llc Monopolowa Gin 6,775
144 500 Vranken America Pommery Brut Apanage 464
164 500 Vranken America Pommery Cuvee Louise 548
178 500 Vranken America Pommery Pink Pop 303
198 500 Vranken America Pommery Pop Blue Gp 74
233 991 Thienot Usa Inc C Duchene Brut Authentic 2,596
236 991 Thienot Usa Inc C Duchene Cuvee Leonie 151
239 991 Thienot Usa Inc C Duchene Cuvee Leonie Rose 9,469
241 991 Thienot Usa Inc C Duchene Leonie Brut 1Pk 300
242 991 Thienot Usa Inc C Duchene Leonie Brut 1Pk 150
243 991 Thienot Usa Inc C Duchene Leonie 402
246 991 Thienot Usa Inc C Duchene Brut Authentic 5,147
256 991 Thienot Usa Inc C Duchene Rose Authentic 274
259 991 Thienot Usa Inc C Duchene Charles Vii Sm Rose 5,795
274 991 Thienot Usa Inc C Duchene Brut Charles Vii 1,008
284 991 Thienot Usa Inc C Duchene Brut Rose Charle Vii 1,095
288 991 Thienot Usa Inc C Duchene Bdn Charles Vii 2,540
289 991 Thienot Usa Inc C Duchene Bdb Charles Vii 1,223



IPIC LIFO Calculation Services Using Client-Assigned BLS CPI/PPI Categories Inventory File Requirements


LIFO-PRO is sent a client-furnished inventory file containing the following data:

  • Detailed/summarized listing of all inventories
  • BLS CPI/PPI category number assignment
  • Detailed/summarized year end inventory balances

Example Inventory File Format for IPIC LIFO Calculation Services Using Client-Assigned BLS CPI/PPI Categories


Item #Vendor #Vendor NameItem DescriptionExtended CostPPI CodePPI Category Description
3200 674 Georgetown Trading Co James Pepper 1776 Ale 3,003 02610101 Bottled beer and ale
5342 693 Prestige/Us Distilled Co. Gionelli Root Beer 80 02610101 Bottled beer and ale
8209 762 Purple Valley Imports Usa Llc English 92Pf Classic 760 02610108 Other malt beverages and brewing products
8259 762 Purple Valley Imports Usa Llc English Classic Peated 46% 559 02610108 Other malt beverages and brewing products
1678 726 Team Spirits Imports Co Chairmans Reserve Rum 2,541 02610204 Bottled liquor, excluding brandy
1702 815 Florida Distiller/Imperial Brd Deauville Sour Apple 323 02610204 Bottled liquor, excluding brandy
1807 292 International Beverage Co. Inc Deanston 12Yr 8X12 2,651 02610204 Bottled liquor, excluding brandy
3344 609 Kentucky Bourbon Distillers Kentucky Vtg Brbn 90 P 6Pk 968 02610204 Bottled liquor, excluding brandy
4114 871 Bendistillery/Crater Lk Crater Lake Gin 209 02610204 Bottled liquor, excluding brandy
90202 185 American Beverage Marketers Master Manhattan 155 02610204 Bottled liquor, excluding brandy
1029 674 Georgetown Trading Co John Sullivan Irish Bourbon 10,283 026102041 Bottled whiskey
1335 7 A.Hardy/Usa Ltd. Millars Irish Whiskey Spl Resv 4,748 026102041 Bottled whiskey
1376 910 Koval Distillery Koval Single Barrel Bourbon 6,864 026102041 Bottled whiskey
1386 910 Koval Distillery Koval Rye Chicago 522 026102041 Bottled whiskey
1389 910 Koval Distillery Koval Lions Pride Dark Rye 69 026102041 Bottled whiskey
1392 910 Koval Distillery Koval Rye 1,449 026102041 Bottled whiskey
1393 910 Koval Distillery Koval White Rye 1,134 026102041 Bottled whiskey
1395 910 Koval Distillery Koval Millet 2,047 026102041 Bottled whiskey
1398 910 Koval Distillery Koval Four Grain 1,392 026102041 Bottled whiskey
1399 910 Koval Distillery Koval White Millet 6Pk 432 026102041 Bottled whiskey



Internal Index LIFO Calculation Services & Current Year Index Computation Inventory File Requirements


LIFO-PRO is sent a client-furnished inventory file containing the following data:

  • Item Number
  • Item Description
  • Current Year Item Quantity
  • Current Year Item Unit Cost
  • Prior Year Item Unit Cost

Example Inventory File Format for Internal Index LIFO Calculation Services & Current Year Index Computation


Item #Item DescriptionCurrent Year Quantity On HandCurrent Year Unit PricePrior Year Unit PricePool #
353362 RL 2 IN X 600 FT SPECTRA 12 STRAND 1.000 13,656.00 New 1
353361 RL 1-3/4 IN X 600 FT SPECTRA 12 STRAND 1.000 11,712.00 New 1
353360 RL 1-1/2 IN X 600 FT SPECTRA 12 STRAND 1.000 7,722.00 New 1
180302 SM65 31.5IN(H) PAC ARCH 1.000 5,326.65 New 1
403446 RL 3IN X 600FT 12-STRAND ICE 4.325 4,131.84 4,085.09 1
402205 COIL 1-3/4INX 1500FT SUPERTEC 12/12 2.625 3,998.78 New 1
409146 COIL 4IN X 600FT 8ST WHITE NYLON-GULF 1.000 3,820.32 New 1
346255 REEL 2-1/2IN X 600FT 3.000 3,673.17 New 2
180100 EA ORT-4OO BATTERY POWERED 1.700 2,655.00 New 2
180950 EA ORGAPAK ORT250 5/8IN PE 2.000 2,560.76 2,560.35 2
403450 CL 3IN X 600FT 8-BRD ICE BLUE 3.000 2,404.08 2,404.08 2
402225 COIL 4IN X 600FT 8-BRAID 1.000 2,377.62 2,326.67 2
353213 RL 1/2INX 1200FT KEVLAR 12 STRAND 1.000 2,317.00 2,317.00 2



Internal Index LIFO Calculation Services Using Client-Provided Current-Year Indexes and Current-Year Cost Inventory Balances Inventory File Requirements


LIFO-PRO is sent a client-furnished inventory file containing the following data:

  • Current-year cost year end inventory balance(s)
  • Current year index(es)

Example Inventory File Format for Internal Index LIFO Calculation Services Using Client-Provided Current-Year Indexes and Current-Year Cost Inventory Balances


LIFO PoolCurrent Year Cost 12/31/2016 Inventory BalanceCurrent Year Index
New Cat Machines 29,300,904.16 1.0086739
Parts 6,777,372.97 0.9993285
Engines 428,708.31 1.0146617



LIFO-PRO File Upload Portal
Request LIFO Service Cost Estimate