Suppose you have a list of products, and you want to make changes to that list. If some of those products have a special way of calculating their cost, like “FIFO” or “LIFO,” and you use NetSuite to make those changes, it might not work as expected. Instead of following the special rules for those products, NetSuite will use an average cost for all of them.
Here’s an example: Imagine you have a product that you sell in January but didn’t receive until February. NetSuite might show the cost for January as too low and for February as too high.
When the cost is too low, it’s because NetSuite uses the cost from the most recent transaction before the cost went too low. When the cost goes back to normal, NetSuite makes a correction to show the right cost for that time. This might make the reports look wrong for those periods.
So, the best way to avoid these problems is to only use the NetSuite tool for products that don’t have special cost rules like FIFO or LIFO. If a product’s cost is too low, don’t use the tool to fix it. Instead, use a different tool called “Inventory Count.” It’s better for making sure you have the right number of products in stock and their correct cost. But if you must use the NetSuite tool, be careful with products that have unusual cost rules.