Choose a Costing Method
Every product needs a costing method — how Biznsbook works out what a unit of stock is worth. Weighted average is the default for every item, but you can choose a different method per product before its first stock transaction.
The three methods
| Method | Best for | How it works |
|---|---|---|
| Weighted average | General trading stock, perishables | Recalculates the average cost on every receipt |
| FIFO | High-value or closely tracked items | Each receipt creates a cost layer; sales consume the oldest layer first |
| Standard cost | Stable manufactured or purchased items | Stock is always valued at a fixed cost you set; differences from actual receipt cost post as a variance |
Set the costing method on a product
- Open Products → Edit the item.
- Expand the Costing section.
- Choose Weighted Average, FIFO, or Standard cost.
- For Standard cost, enter the standard cost amount.
- Save.
:::warning The method locks after the first transaction Once a GRN, sale, adjustment, or other stock movement happens against the item, its costing method locks. If you need to change it later, ask your company administrator — this needs a supervised migration. :::
Reviewing costing
- FIFO cost layers — open from the item's Costing section to see layer age, remaining quantity, and unit cost.
- Standard cost variance — under Inventory Reports, lists GRN receipt variances against standard cost and whether each posted to the ledger.
- Inventory valuation — shows a Costing column and values each item by its own method.
:::info Not the same as picking order FEFO/FIFO picking (which physical batch gets shipped first) is separate from FIFO costing (which receipt cost is used). You can use FEFO picking with weighted average costing. :::