Depending on your type of business, you may wish to have your inventory value reported using any of a number of different methods.
AdvancePro’s FIFO/LIFO module allows for these inventory costing methods:
- Using the First In First Out (FIFO) costing method, your inventory value is calculated under the assumption that the first product that you brought in was also the first unit sold.
- Under the Last In First Out (LIFO) costing method, your inventory value is calculated under the assumption that the last item that you purchased was also the first item that you sold.
- The moving average costing method tends to provide inventory valuations between those of FIFO and LIFO. It is calculated by re-calculating the average cost of each inventory item in stock after every inventory purchase.
- The Last Primary Vendor Bill costing method provides you with a report of your inventory costs based on the assumption that all of your inventory for a certain product has the same cost as that on your most recent primary vendor bill.
For more information on AdvancePro inventory management system see our full features list available here.
