Stock accounting methods
This feature is used to set the way the product should be sold.
FIFO (First In First Out) -> In this the old stock should be sold first.
LIFO (Last In First Out) -> In this the most recent purchase stock should be sold.
Example
Purchase 20 pcs of product A on 20 March 2018. Expiry date 10 April 2018
Purchase 20 pcs of the same product A on 23 March 2018. Expiry date 8 April 2018
Lets say today I sold 22 pcs.
If the “Stock Accounting Method” is FIFO -> Then the Product purchased on 20 March 2018 will be deduced with 20 pcs and after that product purchased on 23 March 2018 will be deduced with 2 pcs.
So in stock, we will have products from 23 March 2018 with 18 pcs.
If the “Stock Accounting Method” is LIFO -> The opposite of the above will happen.
Important Note:
You must set the required accounting method before selling the item for that accounting method to be used.
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