How does FIFO address serialized items?

rdg101

In an inventory system which uses the FIFO method of accounting, how should it handle the costing of a serialized item during a sale ? Should the cost be the actual, recorded cost from receipt of goods? Or, simply the next cost in the FIFO table? Example, 5 units of an item (all serialized) are received at $5 each, then an item is received at $6 with SN 1234. If I sell the item w/ SN 1234 before the initial 5 units are sold, should the cost be $6 or $5?

bbrown

That depends on a number of things, but the final cost after purchase is invoiced and adjust cost run would be $6.00. But the cost prior to those events may not be.

Alex_Chow

If I'm not mistaken, the cost will be taken out using FIFO method even if you're using serial numbers. Unless the Applies-to Entry No. is used.

bbrown

It depends on whether "SN Specific Tracking" is set in Item Tracking Code. If not set, then FIFO is used.