Costing Methods



Costing Methods affect how the total value of your inventory in your accounting records is calculated over the course of time. DEAR uses actual accounting costing methods.


DEAR allows the following costing methods:

  1. FIFO

  2. FIFO - Serial Number

  3. FIFO - Batch

  4. FEFO - Serial Number

  5. FEFO - Batch

  6. Special - Batch

  7. Special - Serial Number




FIFO Methods

  • FIFO

  • FIFO - Serial Number

  • FIFO - Batch


Use the “First-In First-Out” Inventory Costing Method to determine the value of goods sold where in the first batch of purchased inventory will be the first ones to be sold. The first goods that were purchased are going to be the first cost that will associate with the sale. This method normally assumes that the oldest goods are sold first, but the physical movement of goods does not necessarily have to follow this order. 


Variations FIFO - Serial Number and FIFO - Batch make Serial number/Batch field mandatory. The serial/batch number must be specified in the Pick stage of the sales process as well as the Stock Received of the purchase process. 




FEFO Methods

  • FEFO - Serial Number

  • FEFO - Batch


Use the “First-Expired First-Out” Inventory Costing Method when material requirements are serviced in the order of items with the earlier date of consumption regardless of the date of entry or acquisition.


FEFO is mainly used in the food industry and where it is required to monitor the expiration date or period of durability. If a batch or serial number is not specified, DEAR will automatically generate batch numbers for the product. The serial/batch number must be specified in the Pick stage of the sales process as well as the Stock Received of the purchase process. 




Special Methods

  • Special - Batch

  • Special - Serial Number


Special methods require a batch or serial number to identify products and are not affected by when the items were added to your inventory.. If a batch or serial number is not specified, DEAR will automatically generate batch numbers for the product. The serial/batch number must be specified in the Pick stage of the sales process as well as the Stock Received of the purchase process. 


Special - Batch 

Use the Special-Batch Inventory Costing Method to determine the cost of goods using their assigned Batch numbers.


The DEAR Inventory system is capable of tracking goods sold, using an assigned Batch number, once the sold items are invoiced. This will allow user to trace goods in case a recall occurs or customer requires any information about the product/batch sold to them.


Special - Serial Number

Use the Special-Serial Number Inventory Costing Method to determine the cost of goods using their assigned Serial Numbers. Adding Serial Numbers to your product is extremely helpful to your business because:

  • Each product will have its own unique identifier and can be easily verified whenever there is a product return. You can also make sure that the product returned is from your store.

  • It makes handling of warranty and claims simple.

  • Your business’ product reporting will be accurate up to Serial number level.

  • Search within your Inventory or past Sale and Purchase Orders will be easier and save you time looking for a specific product.