Glossary
First in, first out (FIFO)
FIFO is a rule that says the oldest goods to enter the store are the first sold and costed at their own price.
What it means for a shop owner
It suits goods that age or whose buying price moves, because you sell old before new and cut waste. When the buying price changes, each sale is costed from the oldest batch first, so profit reads closer to what really happened.
A worked example
You bought 10 pieces at 5, then 10 at 6. You sell 12: the first 10 cost 5 and the next 2 cost 6, so the cost of the sale = 50 + 12 = 62.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes