Difference between Product Cost method Average and FIFO

[appu]

Hi All,

I didn't understand the difference between Avg and FIFO.

when i tested what i observed is if product is set with avg or FIFO cost price is updated 

whenever stock move in or move out.

cost price is updated but alway with Avg stock value of the inventory.

Can anyone please help me  how they differ each other?

Thanks in Advance

-Appu

[Cédric Krier]

On FIFO, there is not really a cost price defined on the product because
FIFO work at the move level. But as we need to fill the field, we fill
it with the average because it is kind of close to what FIFO does.
But if you want to see FIFO in action, you must look at the cost price
stored on each move. You will see that outgoing move is updated
following FIFO.

--
Cédric Krier - B2CK SPRL
Email/Jabber: cedric...@b2ck.com
Tel: +32 472 54 46 59
Website: http://www.b2ck.com/

[appu]

Thank you very much kind help Cedric.

Regards

-Appu