Inventory Costing Software

Moving average cost and FIFO. Moving average is the default: every receipt blends into one cost per variant, which suits a business whose purchase prices drift between orders. FIFO values what you sell at the cost of the oldest units you still hold, which suits operations where the flow of specific units matters. Use the method your accountant already works in.

It updates when goods are received, which is the moment the cost actually changes. There is no overnight job and no month-end recalculation. A purchase at a new price moves the average as soon as the receipt is recorded, and every sale after that reads the new figure.

They are included, as long as you record them on the purchase order. Extra cost lines are distributed across the line items by value and raise each product’s landed unit cost before it reaches costing. They do not sit in a general expense account disconnected from the goods that caused them. See landed costs.

Inventory value and cost of goods sold reach your accounting system automatically, because the cost of goods account is adjusted as sales orders are fulfilled and shipped. Your accounting platform stays the book of record, and there is no manual journal entry needed to keep the two in agreement.

Yes. The stock on hand report shows quantity, unit cost and total value for every variant against the live position, so you can read what your stock is worth right now. It is not a closed period, and nothing has to be rebuilt to produce it.

If your SKU count is small and steady, purchase prices are flat, and volume is low, a monthly spreadsheet is a reasonable system. The section above lists the specific triggers that break it: price variation between orders, freight and duty large enough to matter, and volume that outpaces a monthly recalculation.