FIFO is used when selling stock
FIFO stands for first-in, first-out, meaning that the oldest stocked items are recorded as sold first but does not necessarily mean that the exact oldest physical object has been tracked and sold. In other words, the cost associated with the inventory that was purchased first is the cost expensed first.
LIFO is used when producing credit notes
LIFO, stands for last in first out, meaning the last item brought into stock, will be the first item out of stock when producing credit notes.
