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Level 1


May i know if quick book online inventory come with FIFO or LiFO methed?

also, if the Inventory on average balance or basic on individual fixed price methed?

2 Comments 2
QuickBooks Team


I'd be pleased to discuss with you about how FIFO or inventory works in QuickBooks Online, HMChong. 


QuickBooks Online uses the FIFO method. If we entered $0 cost, the system would calculate it as $0 COGS unless the quantity for the first units purchased (First In) will be zero. That's the time QuickBooks Online will use the cost of the second units purchased.


Make sure that the starting date of the FIFO is prior to the transaction dates. QuickBooks will depend on the start date you've selected when switching to FIFO, and those items used before the start date of the FIFO will fall under the Average costing.


When FIFO is enabled, any existing items are placed into one costing layer. Additionally, please know that the report only includes balances and transactions from the date of when FIFO began.


You can read through this article for additional information. It also provides an example of average costing and FIFO costing and the sample scenarios to help you understand the concept of FIFO.



All you need to know about tracking your inventories in QBO can be found in this article:



Should you have any other concerns regarding inventory, let me know and I'll help out again. 

Fiat Lux - ASIA
Level 15



You need a 3rd party inventory management app to manage average cost.