Inventory & Manufacturing
FIFO / LIFO / Weighted Average
Inventory costing methods determining the cost assigned when items are sold or consumed — First-In-First-Out, Last-In-First-Out, or Weighted Average.
What it means
FIFO assigns the oldest cost to consumed inventory (closing stock at recent prices). LIFO assigns the newest cost (closing stock at older prices) — disallowed under Indian accounting standards. Weighted Average computes one running average cost.
Indian accounting standards (AS-2 / Ind AS 2) permit FIFO and Weighted Average. Method choice affects P&L and balance sheet, especially in inflationary periods.
How Easedesk handles FIFO / LIFO / Weighted Average
Easedesk supports FIFO and Weighted Average per item or per warehouse. Method choice is auditable and locked at financial year boundaries.
Related terms
Want FIFO / LIFO / Weighted Average handled automatically in your ERP? Easedesk does it natively — along with 50+ other Indian business modules.
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