Methods of coasting
Stock Items are purchasing by different prices, you are buying one item 10$ today and it may be bought tomorrow for 11$ and after one week may be 12$.

Now the question is 'how much is the real cost of that item in stock?'

Finding the real cost of each item in stock is depends on the method of coasting and it could be Average, FIFO or LIFO.

and selecting each method is base for calculating profit and loss. report.

In most of other accounting software you can define only one method for all Items but in AFG Accounting software any Stock Item could have it's own and may be different method of costing.

For example one item uses Average method and the another uses FIFO in the same time.

So, by using this ability of software you can set LIFO method for the items which has too much price changing (like gold or some expensive items) and Average method for the others.

In this case you have more accurate cost of items and profit and loss. report and when you have more accurate reports you have ability to make better decisions for your business.
 
   
 
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