If a PO is available, Skubana will use the First In/First Out (FIFO) method to calculate Inventory Value by multiplying the number of units with the vendor/PO product cost.

For example, let's say you have 10 widgets in a warehouse, and each one cost you, the seller, $1. In other words, you paid $1/widget to your vendor for a total of $10.

So you have these 10 widgets in your warehouse, which means you now have $10 in inventory value. Currently, there are no orders for that widget, so your COGS is $0.

Now, you sell one widget and SHIP it, meaning it has LEFT the warehouse. At that point, your inventory value for that warehouse is $9, and your COGS is $1.