Inventory Costing Engine
FIFO Inventory Management
FIFO means First-In, First-Out. The system always consumes the oldest available lot first, so inventory valuation and COGS stay aligned with real stock flow.
Inbound Stock
Purchases are stored as lots.
Lot Layers
Lots are ordered by oldest first.
FIFO Consume
Outbound moves consume oldest lots.
Cost Output
COGS and margin stay aligned.
FIFO
Chronological Depletion
Lot
Lot Traceability
COGS
Margin Accuracy
Lot Stack
Lot A (Oldest)120 Units
Lot B80 Units
Lot C (Newest)60 Units
Depletion Timeline
Sale #001Lot A
Sale #002Lot A + B
Sale #003Lot B
Lot Consumption LogicFinancial Impact and ReportingOperational Benefits