NetSuite provides the following inventory costing methods:
- Average – Costing is calculated as the total units available during a specific date range. The units are then divided by the beginning inventory cost plus the cost of additions to inventory. Average is the moving average method.
- First-In, First-Out (FIFO) – The first goods purchased are assumed to be the first goods sold. Therefore, the ending inventory consists of the most recently purchased goods. This method is useful to track different shipments of similar products.
- Group Average – This costing lets you track one average cost for an item across multiple locations within a defined group. For more information, see Group Average Costing.
- Last-In, First-Out (LIFO) – The last goods purchased are assumed to be the first goods sold. Therefore, the ending inventory consists of the first goods purchased.Note: Last-In, First-Out (LIFO) is not available in the NetSuite Australia (AU) edition.
- Specific – The exact cost of a serial or lot number entered into the system.
- Lot Numbered – Lot items track the purchase, stock, and sale of a group or quantity of items. It assigns a specific number to the group or quantity. For more information, see Lot Numbered Items.
- Standard – This costing lets you track standard costs for items and to track variances between these expected costs and actual costs. For more information, see Standard Costing.