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Senior Explorer *

Inventory costing

QB Enterprise uses average costing for inventory.  Can that be changed?

3 Comments
Moderator

Re: Inventory costing

Thanks for sharing your product, kenb.

 

With QuickBooks Enterprise Solutions subscriptions that include Advanced Inventory, you have the option to switch from average cost to FIFO (first in, first out) to calculate the value of inventory sold and on-hand.

 

When you use FIFO, QuickBooks calculates inventory values based on the assumption that the first items received are the first sold.

 

If you want to use FIFO, please follow these steps:

  1. Go to Edit at the top menu bar, then choose Preferences.
  2. Select the Items & Inventory on the left pane, then hit the Company Preferences tab.
  3. Click the Advanced Inventory Settings.image.png
  4. Choose the FIFO tab.
  5. Make sure to tick the Use FIFO starting on radio button and set the date.
  6. Hit OK twice.

image.png

Let me share these resources for more details about inventory:

Please reach out to me if there is anything else you need about QuickBooks Desktop. I'd be happy to help. Have a lovely day!

Senior Explorer *

Re: Inventory costing

Are there other costing options?  Last cost?

QuickBooks Team

Re: Inventory costing

Thanks for getting back, kenb.

 

In QuickBooks, there are only two ways on how to track inventory costs. Those are the Average Costing and FIFO.

 

I can send feedback to our developers to add more options for inventory costing. 

 

To help you decide, you can check this: What’s the best way to analyze inventory costs?

 

I'm looking forward to assisting you again.