Once the system processes all inventory transactions for the item and site, the system saves the inventory balances by item, site, and location. This is the balance it uses, for example, in Inv Detail by PC Cost Browse (30.5.13.2) and Inventory and WIP Balance Report (30.5.19.2).

In this step, the system also recalculates the unconsumed quantity by cost calculation period and location when FIFO is in use as the costing method. This guarantees that all inventory is valued according to the same FIFO aging, regardless of the location at which it is stored.