FIFO Inventory Handling
FIFO inventory handling to better track actual inventory costs without needed to create multiple items to handle different costs and suppliers. A FIFO inventory method should allow users to create a PO, convert it to a GRN, and then have the quantities and costs automatically updated for the items in the PO. For example, say I have 5 iPhone 6 charge ports that I purchased from Injured Gadgets at $5/unit and it is time to reorder, but Injured Gadgets raised their prices to $6/unit and I order 10 more. I should be able to add the charge ports to the PO and link the line, quantities, and cost to the item in the inventory. Once the GRN is generated the items should kick over to inventory and allow me to see that I have 5 CP instock at $5 and 10 CP in stock at $6.
It should also work the same way but if I purchased from a different supplier at which have different costs. The system should properly track the supplier and costs of the item put into inventory without needing to serialize each part or creating a new item for the different parts. I shouldn't have to go through the extra work of making sure that I have a product for Mobile Sentrix charge ports and Injured gadgets charges ports, and then expecting my technician who may or may not have done the repair, to ring out the proper item in the POS. All this is possible with FIFO inventory system. Also its just proper accounting
We have already added “Inventory Valuation” functionality in RepairDesk that allows you to manage your inventory with specific valuation method like “FIFO, LIFO or Weighted Average”.
You can find more information from following knowledgebase article:-
If you have any questions to setup it against your account, you can contact us via live chat or email us at support@repairdesk.co
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After months of hardware we're looking to release (FIFO, LIFO, WAC) inventory valuation methods hopefully next week :)
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kevin commented
Hopefully this will be implemented soon...
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kevin commented
So how does RepairDesk calculate the profit? Does it just work it out based on the cost of the first purchase rather than the actual cost of subsequent purchases? Or does it work it out base don the average cost of remaining items?
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Kristan Collins commented
Yes as of right now we are having every employee responsible for putting in the cost. I don't know about you but I don't want every employee knowing our cost. I agree it is true accounting to used FIFO. I have been using the software for a month and have had to adjust cost of goods sold on a daily basis.