What does GFEBS use to maintain inventory for materials?

GFEBS, or the General Fund Enterprise Business System, utilizes Moving Average Cost to maintain inventory for materials. This method provides a dynamic averaging of costs based on purchases over time, allowing for fluctuations in material costs to be captured effectively. When new inventory is acquired, the moving average is recalculated to reflect the most recent purchases, thus providing an accurate and current representation of costs.

This approach is particularly advantageous in environments where material prices can vary significantly, ensuring that the inventory valuation is both up-to-date and reflective of market conditions. By using the Moving Average Cost method, GFEBS can ensure more accurate budgeting, forecasting, and financial reporting for materials inventory, which is essential for effective financial management within the system.