FIFO
FIFO (first in, first out) is an inventory costing method where the oldest stock is assumed to be sold or used first. In Peasy, FIFO is the oldest-cost-first model used for lot-aware costing and inventory valuation.
How It Works in Peasy
- When you receive inventory, Peasy records the cost per unit for that batch or lot
- For lot-tracked inventory, older available lots are the first ones used for FIFO cost resolution
- Lot tracking works naturally with FIFO because earlier lots provide the oldest cost basis
- Shopify orders can also auto-assign lots oldest-first when FIFO lot assignment is enabled in Shopify settings
- Inventory valuation and cost views reflect FIFO-based costs when Peasy has the underlying lot or production-cost data
Why It Matters
FIFO provides an accurate, consistent way to value your inventory and calculate profit margins. Once your receiving, lot, and production costs are in Peasy, the oldest-cost-first logic is applied for you — you don't need to calculate that ordering by hand.
