Workflow guide
FIFO inventory valuation: how Tiram costs your stock
Quick answer
Every product purchase in Tiram creates a FIFO cost layer at its actual purchase cost; every sale, transfer, or return consumes the oldest layer first, splitting across lots if needed. The Inventory Valuation report totals your remaining, unconsumed cost layers to show what your on-hand stock is really worth — real FIFO, not an estimate from list price, on every Tiram plan.
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Workflow step
What FIFO costing means for your margins
First-in-first-out costing means the oldest purchase cost for a product is the one used first when it sells. If you bought 10 units at ₹40 and later 5 more at ₹45, selling 12 units costs 10 × ₹40 + 2 × ₹45 — not a blended average, and not today's replacement cost. That distinction matters whenever your purchase price moves between restocks: FIFO keeps your margin numbers tied to what you actually paid for the specific units sold.
Workflow step
How cost layers are created
Every time you receive goods against a purchase order (a GRN receipt), Tiram creates one FIFO cost layer per line at that line's actual unit cost — no manual costing step required. Layers are also created for opening stock and rebuilt automatically at the destination when stock arrives via a warehouse transfer.
Workflow step
How cost layers are consumed
A sale, a purchase return, or a transfer dispatch all consume cost layers oldest-first. If a sale spans multiple purchase lots, Tiram splits the cost correctly across them and records the exact cost of goods sold against that specific invoice line — this is what powers accurate per-product margin in your sales and profitability reports.
Workflow step
Reading the inventory valuation report
Reports → Inventory Valuation lists, per product and warehouse, the quantity on hand, the FIFO unit cost of the remaining (unsold) layers, and the total value — plus totals for overall inventory value, total quantity, and stocked SKU count. Because it's built from real remaining cost layers rather than a single current list price, the figure reflects what your actual stock cost you to buy, lot by lot.
Workflow step
Which Tiram plan includes FIFO costing and the valuation report?
FIFO cost-layer costing and the Inventory Valuation report are included on every Tiram plan — Silver, Gold, and Platinum — on both the cloud app and the offline Windows/Mac desktop app.
Quick answers
- Does Tiram use FIFO for inventory costing?
- Yes — every purchase receipt creates a FIFO cost layer, and every sale or transfer consumes the oldest layer first.
- What does the inventory valuation report show?
- Quantity on hand and FIFO cost value per product and warehouse, built from the actual remaining cost layers — not a single list price.
- Is FIFO costing available on every Tiram plan?
- Yes, including Silver — it's core inventory functionality, not a paid add-on.
- What happens to cost if a sale spans two different purchase lots?
- Tiram splits the cost of goods sold correctly across both lots at their original purchase prices, oldest first.
FAQs
- Where do I see my inventory's FIFO valuation?
- Reports → Inventory Valuation — per product and warehouse, with quantity, unit cost, and total value.
- Do I need to manually enter a cost for each sale?
- No — cost is calculated automatically from FIFO cost layers created at purchase receipt.
- Does the valuation use today's purchase price or the original cost?
- The original cost of the specific remaining units — real FIFO, not a current replacement-cost estimate.
- Does FIFO costing work the same on the offline desktop app?
- Yes, identically — it isn't gated by platform or plan.
- Which plan includes FIFO costing?
- All of them — Silver, Gold, and Platinum.
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