First in/first out (FIFO) inventory pricing |
The application uses the unit price of the oldest lot for issues and transfers out of the location. Upward and downward adjustments of quantity affect the oldest lot (or lots). The application does not support issuing parts with insufficient inventory with FIFO pricing.
The Inventory pricing method field on the General tab of the Data -> Parts Items -> Setup -> Options screen specifies whether you use the AVERAGE, FIFO, or LIFO method to price the parts in inventory.