FIFO Inventory Analysis

CLIENT: Multinational Consumer Electronics Retailer

Sapling was engaged by a leading consumer electronics retailer to conduct a FIFO Inventory calculation as of the year ended December 31, 2021. The data sets include millions of records for daily transactions of over 150,000 SKUs from 2018 to 2021 using Average Cost method

3 Key Insights:

Given the size and non-standardized nature of the data sets, we leveraged mySQL database and created scripts to smooth the transaction and inventory records

Once data wrangling had been completed, our scripts back-calculated inventory value over the three-year period while tracking foreign exchange rates and other adjustments. Another script was also executed to account for irregularities in data sets, including incomplete entries and special items requiring non-standard treatment

The result of our analysis helped our client obtain a clearer picture of inventory movement, close their books, and meet the requirements of the client’s auditor

EXAMPLE: Summary of FIFO Adjustment

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