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28Hi Community.
I just need to verify how the FIFO costing method works in BC.
I have my items setup as FIFO and is lot tracked.
With typical FIFO the cost of your items sold will always be the cost of the first batch purchased even if you sold the 2nd batch first.
Ex.
batch 1 = Lot 1 purchased 100 units @50/unit = 5000 total value
Batch 2 = Lot 2 purchased 200 units @ 40/unit = 8000 total value
When I sell 150 units
100 units of lot 2 + 50 units of lot 1 = total
System should cost you
100 units @50/unit +50 units @ 40 = total
5000 + 2000 = 7000
This is how typical FIFO will work
But in BC if it is lot tracked and even if you are using FIFO it will "change" the costing method to Specific Costing after you apply cost adjustments.
Soo BC scenario will be
100 units@40 + 50 units@50 = total
4000 + 2500 = 6500
I can't find documentation on lots and costing method but I did test and this is what I saw the system doing in the Value Entries.
If anyone can chime in and verify if this is how their system acts to please do mention it.
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