All LIFO calculation service clients receive a complete set of LIFO-PRO reports in Adobe PDF form (reports may also be provided in Excel or paper format). Companies that use different Book & Tax LIFO methods are provided separate Book & Tax LIFO-PRO reports.
Standard Reports for LIFO Services
- Year End LIFO Summary Report
- LIFO Reserve Calculation Report
- LIFO Inventory History Summary Report
- LIFO Layer History Report
- LIFO Inventory History Detail Report
- LIFO Expense Components Report
IPIC LIFO Reports
Companies using the IPIC Method are provided the following supplemental IPIC LIFO Reports along with the standard LIFO Reports listed above:
- IPIC LIFO Calculation Summary Report
- IPIC LIFO Index Calculation Detail Report
- IPIC LIFO Index by PPI Code Report
- Replaced & Discontinued BLS PPI Categories Summary Report
- IPIC Pooling Method 5% Method Proof Report
Supplemental LIFO Reports
The following additional LIFO reports are available to clients by request(if applicable):
- Sec. 263A UNICAP Costs LIFO Reports– Sec. 263A UNICAP costs are calculated & integrated into the LIFO Reports (using Sec. 263A absorption ratio)
- Consolidated Reports- LIFO Reports that combine multiple entity’s LIFO calculations for consolidated reporting and tax filings
- Separate Book & Tax LIFO Reports- Companies that have differing Book & Tax LIFO methods/balances are provided separate Book & Tax LIFO reports
- LIFO Projection Reports– LIFO-PRO provides clientele mid-year, quarterly or monthly LIFO projections reports
LIFO Reports Benefits
|Report Name||Report Benefit|
|Year End LIFO Summary Reports||All Book & Tax LIFO entry amounts in one report|
|LIFO Reserve Calculation Reports||Proof of math to perform LIFO calculations|
|Summarized & Detailed LIFO Inventory Report||Current year end and historical formats|
|LIFO Layer History Report||Complete carryforward schedule for all LIFO layers|
|LIFO Expense Components Report||Provides all GAAP-required LIFO disclosure amounts|
|IPIC LIFO Calculation Report||Weighted average index by PPI Code & LIFO Pool|
|LIFO Projections Reports||LIFO planning & forecasting capabilities|
LIFO-PRO Reports Table of Contents
LIFO Projections Report (Report 1) The LIFO Projections Report shows the prospective year’s LIFO expense (income) amount that would result from the selected range of year-end inventory current year cost (FIFO or average cost) balances shown in the leftmost column and the selected range of inflation indexes (Columns B through K).
LIFO Reserve by Layer Report (Report 15) The LIFO Reserve by Layer Report shows which years’ layers the most recent year-end LIFO reserve is attributable to by the corresponding amounts along with the FIFO balance required to erode each layer.
LIFO Inventory History Summary Report (Report 16) The LIFO Inventory History Summary Report is a one page per pool LIFO history carry-forward schedule for all years, which includes all data fields involved in the calculation of LIFO balances once the current year index and current year cost (FIFO or average cost) total by pool has been determined. This format shows the amount of the original increment or decrement and the amount of all layers remaining as of the latest year closed. The cumulative inflator indexes for years in which there are decrements is the weighted average index of the layers eroded and is equal to the priced increase (decrease) in LIFO cost divided by the decrease at base prices.
LIFO Layer History Report (Report 16a) The LIFO Layer History Report is a one page per pool schedule showing the detail by layer of all decrements and the detail by layer of all layers remaining. This report is a proof of the Report 16 decrement calculations.
LIFO Inventory History Detail Report (Report 17) The LIFO Inventory History Detail Report is a one page per pool LIFO history for all years which includes all data contained in Report 16, but also shows the remaining balances of all layers for all years.
Actual Year End LIFO Summary Report (Report 18) The Actual Year End LIFO Summary Report provides summary information for each pool and in total for the current and previous year ends (separate reports for each year). This report shows the balances necessary to make the LIFO accounting entries. Balances shown include the inventory current year cost (FIFO or average cost), current and cumulative indexes, LIFO inventory, reserve and expense.
LIFO Reserve Calculation Report (Report 18a) The LIFO Reserve Calculation Report shows all the steps necessary to calculate all years’ LIFO reserves and shows the details of decrement calculations where applicable. This report shows these calculations by pool & in total for the year. The bottom section of this report shows the breakdown of the LIFO expense or income components between the inflation index effect and the layer erosion effect. Report 18a is an important LIFO internal controls documentation tool that provides a proof of the LIFO math for the current year LIFO calculation. This report can be utilized as the source document for vouching the current year LIFO reserve calculation.
Consolidated Entities LIFO Calculation Report (Report 18C) The Actual Year End LIFO Calculation Summary Report for Consolidated entities rolls up year end LIFO calculations and combines current year cost year end inventory balances. It also provides a weighted-average current year deflator index and combines LIFO inventory, reserve & expense balances. This report is used for companies that have multiple entities with separate LIFO calculations, but require consolidated financial reporting.
LIFO Expense Components Report (Report 19) The LIFO Expense Components Report shows the breakdown of the LIFO expense or income components between the inflation index effect and the layer erosion effect. The latter is the pre-tax amount that is required by GAAP to be disclosed in the notes to the financial statements (if material) for financial reporting purposes.
Consolidated Entities LIFO Expense Components Report (Report 19C) The LIFO Expense Components Report for Consolidated Entitie shows summary information for each pool and in total listed by company (consolidated grand total provided at the bottom) the breakdown of the LIFO expense or income components between the inflation index effect and the layer erosion effect. The latter is the pre-tax amount that is required by GAAP to be disclosed in the notes to the financial statements (if material) for financial reporting purposes.
UNICAP (Sec. 263A) Costs Reports LIFO-PRO provides UNICAP Sec. 263A Reports in six different LIFO Reports. The Sec. 263A absorption ratio is provided to LIFO-PRO for integrating company UNICAP costs into the LIFO Reports. The LIFO Inventory History Summary Report (Report 16) shown above includes the following
- UNICAP Costs Applied Using Sec. 263A Absorption Ratio (provided in Column D)
- LIFO Inventory Balance Excluding & Including UNICAP Costs
- LIFO Reserve Excluding & Including UNICAP Costs
- LIFO Layer At Base Cost
- LIFO Layer At Cost Excluding & Including UNICAP Costs
IPIC LIFO Calculation Summary Report (Report 23S) The IPIC LIFO Calculation Summary Report shows values by pool and in total showing the IPIC method pool indexes for the current year as well as the prior and current year cumulative indexes, FIFO and LIFO inventory balances, LIFO reserve, and LIFO expense.
IPIC LIFO Index Calculation Report (Report 23) The IPIC LIFO Index Calculation Report shows the details of the pool index calculations using Harmonic Mean Weighting specified in IRS Regulations.
IPIC LIFO Inflation Index by PPI Code Audit Report (Report 24) The IPIC LIFO Index by PPI Code Report shows the current and prior year inflation indexes and calculation of current year inflation indexes for all PPI categories. This report is the source document used when performing an audit that includes substantive tests of the current year IPIC LIFO CPI/PPI category index calculations.
Replaced & Discontinued BLS PPI Codes Summary Report (Report 25) The Replaced & Discontinued BLS PPI Codes Summary Report shows the PPI categories assigned to inventory balances on the Excel input schedule which have been discontinued or recoded (index series continues for this item but another commodity code number is assigned).
This report is organized into three sections:
- Categories for which replacements were automatically made by the LIFO-PRO software for the current period index calculations
- BLS PPI category replacements made for future periods based on when the categories were discontinued
- Instances where manual PPI category replacements for discontinued BLS categories are required due to more than one replacement PPI category being present.
IPIC Pooling Method 5% Method Proof Report (Report 26) The IPIC 5% Method Proof Report shows the IPIC pooling method 5% test proof using IRS Reg. Sec. 1.472-8(b)(4) rules for establishing pools. This shows which of the 15 PPI 2-digit are to be LIFO pools based on inclusion of 5% or more of total inventory.
Sample LIFO-PRO Reportssample_lifo_pro_reports
Sample LIFO Reports Including Sec. 263A UNICAP Costs
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