How FIFO and LIFO works in Navigator

Modified on Thu, 07 Dec 2023 at 07:27 AM

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.

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