• Warehouse Setup
  • Adding a Warehouse
  • Adding Merchandise to a Warehouse
  • Adding a Low Inventory Notification to a Warehouse
  • Adding a Backorder Notification to Your Inventory
  • Transferring Inventory between Warehouses
  • FIFO Accounting and Inventory Management

FIFO Accounting and Inventory Management

netFORUM Pro Pro practices First In First Out (FIFO) accounting practices when applied to inventory management of the Primary Warehouse. This means that the following rules apply:

• When two separate orders or 'buckets' of the same product exist in the Primary Warehouse, the bucket that was entered 'first in' will be exhausted before the second bucket is used to fulfill customer orders. For example, in the image below, the Association Management Best Practices book has two separate orders or Receive Date buckets that have been added to the Primary Warehouse. The warehouse Quantity is now calculated from both buckets. However, the first bucket with the 10/19/2011 date was received first and therefore will be exhausted from inventory first before the 6/13/2012 Received Date bucket.

• If you have two buckets of the same product that were received on the same date, the system will use the time stamp of the buckets to judge which bucket was received first in to fulfill products.
• When you transfer inventory to a Secondary Warehouse, inventory is still exhausted from the Primary Warehouse buckets first before the Secondary Warehouse buckets are utilized. For example, if you transfer all items of a product leaving only 5 in your Primary Warehouse and then an order for 10 is received; the 5 remaining in your Primary Warehouse bucket would be taken and fulfilled first. Further, fulfillment can only take place from your Primary Warehouse. For this reason, it is not advised to transfer from your Primary Warehouse to your Secondary except in cases of discontinuing a product.