Stock Valuation Methods – FIFO, LIFO, WAC for Retail

Different methods value your closing stock differently. Choose based on your goods and compliance.

FIFO (First In, First Out)

Assume oldest stock sells first. Good for perishables (FEFO), expiry items. Matches physical flow for most kirana. Accepted for GST and income tax.

LIFO (Last In, First Out)

Assume newest stock sells first. Not allowed for tax in India. Used in some countries for inflation accounting.

Weighted Average Cost (WAC)

Average cost = Total cost of purchases ÷ Total quantity. Simple for mixed batches. Some accounting software uses this.

For Indian Shops

FIFO is common and compliant. Use FIFO vs LIFO guide for details. Stockkeeper tracks cost per batch. [Join the waitlist](/ “#waitlist).