FIFO Costing Method

The FIFO method will show the unit cost of the first added quantity on the Sales Order. Even after you update product quantity and unit cost multiple times, the unit cost will remain the same as added first.

  • To implement FIFO costing, go to Settings -> System Management -> Manage System Control Parameters

For FIFO, the Costing Method needs to be set to 2.

For eg.

  • Create a new product, add quantity and unit cost for the preferred stock location
  • Again add another quantity and different cost for same location.
  • Now when you select that product in Sales Order, it will display the first unit cost which was added