The FIFO method of cost calculations is available in Inventory functionality. It can be set as the calculation method in SysManager > Preferences > Inventory > Closing Cost Calculation Algorithm. When set to FIFO the Unit Cost of an item in Inventory Lookup reflects the FIFO method.

Cost of Goods can now be calculated using the FIFO method. To use FIFO for calculating costs: In Inventory reporting FIFO must be selected in SysManager > Preferences > Inventory > Closing Cost Calculation Algorithm.

In order to effectively utilize FIFO it is necessary to run the following reports before and after changing your settings to FIFO. This gives a snapshot of the inventory value. This should be run sometime after the end of your fiscal cycle or season. Once FIFO is selected, run the same report for the same ending date. The difference between them should then be posted to their inventory account in the GL (in standard, traditional retail accounting). Users should expect (and post) a change to their inventory value.

 

You may need to run other standard reports or custom reports that are regularly requested by your finance department. These should be run in the same manner as detailed above.