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Stock valuation FIFO or weighted average.

FIFO (first in, first out) is clear for fashion and seasonal. Weighted average is calmer when purchase prices swing. Pick one method and stick to it, switching mid-year is not fiscally trivial.

Try this first

  1. 1Ask your accountant which method fits your business.
  2. 2Set that method in POS and do not deviate.
  3. 3Document the choice in your admin.
  4. 4On switch (new fiscal year), align with accountant and book correctly.

When to bring us in

Big price swings (energy, food commodities): review with your accountant if the method still fits.

See also

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