Preview of FIFO and LIFO costing for inFlow v3
[Note: this is an older post from before we launched inFlow v3. The good news is that inFlow v3 is now on sale as inFlow On-Premise, and you can download the Free Edition by clicking here.]
It’s time for another inFlow v3 preview video!
This time around, we’re showing you how we’ve added two more costing methods to inFlow. You will now have First-In, First-Out (FIFO) or Last-In, First-Out (LIFO) available to you as costing methods.
FIFO costing assumes you sell your oldest inventory items first, so your oldest purchasing costs will be used to calculate your profit.
LIFO costing, on the other hand, assumes you sell your most recent inventory items first, so your most recent purchasing costs will be used to calculate your profit.
Without further ado, let’s see it in action!
With inFlow v3, you will have the flexibility to choose between standard, weighted average, FIFO and LIFO costing.
Which costing method should you use?
Well, it’s probably best to speak to your accountant, since every business is different. You can also check out this post by Jeff Haden on Inc.com on how to use accounting as a strategy.
We hope by adding FIFO and LIFO costing it will make your inventory and profit calculations more accurate!