How FIFO and LIFO works in Navigator

FIFO and LIFO are inventory management methods used in different scenarios:

• FIFO (First-In, First-Out) is applied when selling stock. This method assumes that the oldest items in inventory are sold first, meaning the cost of the earliest purchased items is expensed first. However, it doesn't necessarily mean that the exact oldest physical item is sold—just that the cost associated with it is recorded first.

• LIFO (Last-In, First-Out) is used when producing credit notes. Under this method, the most recently acquired items are the first to be removed from inventory, meaning the cost of the latest purchases is applied first when issuing a credit note.