Has FIFO been implemented?

[mauroskov]

Since the beginning of 2024 we have been using Manager only for our Payroll, after years where we used it also for accounting and inventory. I can see that now Manager uses FIFO? Is that right? Or can one choose whether to use FIFO or Weighted average cost? There is now even a column in the Items module that is called Valuation methos.

[eko]

See:

Added ability to set inventory valuation method on inventory item level

The latest version (24.12.6) adds new field to Inventory Items form. [image] You can choose from 3 options: First in, first out Weighted average cost Zero cost This allows to have different inventory valuation methods for different items. But most importantly, when clicking Recalculate button under Inventory Items tab, you no longer have to think what inventory valuation method to choose. Instead, Manager will calculate unit costs based on valuation method selected on inventory item level. …

[mauroskov]

Thank you. Is there a guide or some information on how FIFO works in Manager?

We have this business model with three cost components for inventory (goods, transport, import duties that happen at different times) and we can have this situation for example:

1. We buy 100 pieces at $10 each
2. We spend $1 per piece on transport
3. We pay $4 per piece on duties

However, when we receive the goods we might decide to clear only 50 pieces and leave 50 pieces bonded for some time. Therefore we will have a situation with:

50 pieces valued at $15 each and ready to be sold
50 pieces valued at €11 each and still bonded, so not ready to be sold

Manager should pick $15 as COGS per piece. When we clear the next 50 pieces taxes might actually be $5 instead of $4 (due to exchange rates) and therefore once the first 50 pieces are sold, Manager should pick $16 as the COGS per piece of the second batch of pieces.

How can Manager implement this model? I thought of using different warehouses, for example one named “bonded” and one “cleared stock” (can Manager sell based on FIFO from a specific warehouse?) . Or using production orders, which we have never done, even if there is nothing to produce, but just to make the goods ready to be sold only once all the three components are paid on the stock ready to be sold.