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Advanced Stock Management and FIFO


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I have a question about the "Instant Stock Status" and "Valuation". Isn't FIFO also applied when it comes to the valutation of the stock for specific product?

 

Let's assume I

1. add productA, 2pcs, unit price of 100 € (special price from the wholesaler)

2. add productA, 2pcs, unit price of 200 € (regular price from the wholesaler)

 

The "Valuation" in "Instant Stock Status" of the productA will be 600 €.

 

Then

3. Order is made selling 2pcs of productA.

 

That would leave 2pcs of productA.

 

Since the ones that were sold were added first (1), then the ones that are left are the ones that was added second (2). I would assume that the "Valuation" would now be 400 € of the ones that are left? - But is is not, the "Valuation" is 300 € , which is the average price of all pieces before (150 € x 2pcs).

 

Using the advanced stock management, I assumed would help to keep the valuation of the stock, taking into account the price it was bought for and that FIFO would be respected. It is not as it seems, but some kind of average price is calculated every time new amount of the product is added.

 

Comments? Why is not FIFO applied?

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