Glossary
LIFO
LIFO is a valuation method that assumes the last goods you bought are the first sold, so cost uses the newest prices.
What it means for a shop owner
It is not allowed in every country or accounting standard, so ask your accountant before using it. Shops that sell the oldest first use FIFO or average cost. Do not mix methods within the same year.
A worked example
You bought 10 at 5 then 10 at 7 and sold 10, so their cost is 70 under LIFO.
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