FIFO - Posting sequence

Hi All,

For FIFO costing method, i confused on how NAV get the cost of each entry. Below sample shows NAV could not get the correct cost according to the time basis (FIFO):

The lines highlighted in same color show the relation between inventory increase and decrease.

Order by entry no.:

entry order doc date posting date Document QTY open Cost
1 28-Dec 15-Dec SI -10 -1360.00
2 28-Dec 28-Dec PI 10 1360.00
3 28-Dec 28-Dec PI 10 1255.00
4 1-Dec 30-Dec PI 10 yes 1465.00
5 28-Dec 1-Dec PI 10 1045.00
6 25-Dec 25-Dec PI 10 1780.00
7 30-Nov 30-Nov PI 10 940.00
8 25-Dec 25-Dec SI -10 -940.00
9 25-Dec 25-Dec SI -10 -1045.00
10 10-Dec 10-Dec SI -10 -1780.00
11 1-Dec 1-Dec SI -10 -1255.00

Order by Posting Date:

entry order doc date posting date Document QTY open Cost
7 30-Nov 30-Nov PI 10 940.00
5 28-Dec 1-Dec PI 10 1045.00
11 1-Dec 1-Dec SI -10 -1255.00
10 10-Dec 10-Dec SI

FIFO means First-In-First-Out. With this method, the items that were purchased first are always sold first.

The FIFO costing method values the inventory decrease by taking the value of the first inventory increases on inventory.