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kim-z
Level 2

How FIFO work when received item multiple time in a single day?

Hi,

I'm trying to understand how FIFO works in QB.

I ran into a following scenario and I hope someone could help me understand it.

 

I create an inventory with starting value of Qty = 10 and Cost = 5.

Then I create a bill on the same date with Qty = 10 and Cost = 6.

and I create an invoice with Qty = 15.

I ran an "Inventory Valuation Detail" report and it look something like this.

It look correct to me.

Transaction TypeQtyRateFIFO Cost
Inventory Starting Value10550
Bill #110660
Invoice #1-105-50
Invoice #1-56-30

 

But as I go back to Bill #1 and change the Qty from 10 to 20.

I ran the "Inventory Valuation Detail" report  again and it look something like this.

It doesn't look correct to me.

Transaction TypeQtyRateFIFO Cost
Inventory Starting Value10550
Bill #1206120
Invoice #1-156-90

 

As you can see the Invoice #1 now use all item with Rate = 6.

I expected to see it use 10 Qty with Rate = 5 and another 5 Qty with Rate = 6.

Can someone help me understand how FIFO work in this scenario?

 

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