FIFO and expiry: stop losing money on old stock
FIFO (first in, first out) means selling the oldest stock first; for goods with dates, sell the batch that expires first (FEFO). Record batch and expiry on every purchase, bill from the earliest-expiring batch, and check a near-expiry list every week so old stock is pushed before it becomes a write-off.
By Munafa Book team · · 1 min read
In a busy godown the newest stock is easiest to reach, so it goes out first - and the oldest cases end up expired at the back. A few cases a month quietly eat a big share of a thin wholesale margin.
FIFO vs FEFO
FIFO sells what came in first. FEFO sells what expires first. They are usually the same, but not always - a newer delivery can have an earlier date. For beverages, dairy and food, FEFO is what you want.
A weekly routine
- Enter batch and expiry for every purchase.
- Bill from the earliest-expiring batch.
- Every Monday, look at stock expiring in the next 30 days.
- Push those items: offer to regular shops, small scheme, or return to supplier if allowed.
- Write off what is truly lost, with a reason, so profit is honest.
Arrange the godown to match
Keep older batches in front, mark the expiry month on the case, and keep returns in a separate place. The system and the shelf should agree.
Munafa Book records batches with expiry, bills from the earliest-expiring batch automatically, lists near-expiry and low stock on the home screen, and counts write-offs as stock loss in profit - see stock and expiry.