The problem
Inventory valuation gets unreliable fast when costing is tracked loosely - a single average cost per item that doesn't reflect what was actually paid for each batch, or a spreadsheet reconstruction at period-end. Businesses with expiring stock (food, pharma, cosmetics) also need to make sure older stock moves first, which a simple quantity count doesn't enforce.
How AccountDesq solves it
Every stock change is recorded as an insert-only movement, with balances derived from that ledger rather than a single mutable number - the same pattern AccountDesq uses for its accounting ledger, applied to inventory. Costing is a per-item setting: FIFO tracks and consumes specific cost layers in order, Standard uses a fixed cost with variance tracked separately, and Weighted-Average blends cost across the item. Lot and serial tracking is unit-tested against a FEFO consumption algorithm, so expiring stock is drawn down in the right order automatically.
How it works, step by step
Set costing per item
Choose FIFO, Standard, or Weighted-Average for each item based on how you actually need to track its cost.
Record movements, not overwrites
Every receipt, sale, transfer, and adjustment is its own movement record - the balance is always derivable, never just overwritten.
Track lots and expiry
For lot- or serial-tracked items, FEFO logic determines which units get consumed first.
Manage backorders and picking
When demand exceeds available stock, backorders track the shortfall; a dedicated pick-list screen supports fulfillment.
Connected to the rest of AccountDesq
Nothing here works in isolation - it posts through the same ledger as everything else.
In practice
A specialty food importer receives three shipments of the same product at three different costs over a quarter. With FIFO costing, each sale draws down the oldest cost layer first, so the cost of goods sold reflects what was actually paid for the stock that left the warehouse - not a blended average that masks rising import costs.
What this means for your business
- Inventory valuation reflects what was actually paid, not a rough average - which matters directly for gross margin accuracy.
- Expiring stock moves in the right order automatically instead of depending on staff remembering to check dates.
- A real audit trail of every stock movement, not a single quantity number that could have been edited by anyone.
Frequently asked questions
What costing methods does AccountDesq support?
FIFO, Standard costing, and Weighted-Average - selectable per item, not locked to one method for the whole business.
Does AccountDesq support lot and expiry tracking?
Yes, including FEFO (first-expired, first-out) consumption logic for lot-tracked items.
Can I track backorders?
Yes - backorders are tracked explicitly when demand exceeds available stock.