FIFO Inventory Value

Print Friendly and PDF

 Skubana uses FIFO (for First In, First Out) inventory accounting, which calculates the value of inventory on hand at the end of an accounting period and the cost of goods sold during the period. This method assumes that inventory purchased or manufactured first is sold first and newer inventory remains unsold. Thus, cost of older inventory is assigned to cost of goods sold.

This process involves Skubana grabbing inventory values from purchase orders, then filling in any gaps from the vendor product information (COGS), after which it calculates inventory value. Armed with this information, Skubana is able to generate suitable reports, including one which calculates the monetary value of the available inventory in each of your warehouses.

 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

Please sign in to leave a comment.