FAQ Friday: Inventory Methods

A new article has been posted to the TAM Retail blog by Derek Young:

Frequently Asked Questions

Question: Which Inventory Methods does TAM support and what are the differences between them?

Answer: TAM will use one of three inventory methods that you may choose from. Those choices are LIFO, FIFO, or Average Cost.  LIFO refers to “Last in, First Out” and this means when you receive an item, the last item that is received will be the first item to be given to the customer. FIFO refers to “First In, First Out” and it means when you receive an item, the first item received will be sold first. Average Cost does not look at whether an item was received first or last nor if it was sold first or last. It will take an average of both and calculate accordingly. The difference between LIFO, FIFO, and Average cost is just the way that it will calculate your Cost of Goods Sold. This is typically predetermined within an organization by the organization’s accounting team.

To set the Inventory Method, you will be able to go to TAM Office, System Utilities, Setup, and Inventory Management. Within this window, the first option is the Inventory Method. You should select your method and then click OK on the bottom right corner. Please refer to the picture below:

InventoryMethods

If you have more questions about TAM’s inventory methods, or are interested in learning more about your TAM software, please contact our help desk at 866-435-7826, or email us at help@tamretail.com.

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