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Selecting your Inventory Management Method

The inventory management method determines how inventory batches are assigned to orders. You can select your inventory management method from the "Inventory management method" field on the settings page's Inventory tab.

By default the app uses First Expired, First Out (FEFO) but several methods are supported.

First Expired, First Out (FEFO)​

Items with the earliest expiration or use-by dates are prioritized for sale or use, regardless of when they were received.

Best for: Perishable goods, pharmaceuticals, food products, and any inventory with strict expiration constraints where shelf life is the primary risk.

Example​

  • Batch A: Received 2026-01-10, Expires 2026-12-15
  • Batch B: Received 2026-02-05, Expires 2028-05-20
  • Batch C: Received 2026-03-01, Expires 2027-07-10

Under FEFO, Batch B (expires 2028-05-20) is selected first because it has the earliest expiration date.

First In, First Out (FIFO)​

The oldest inventory (earliest received) is sold or used first. This assumes that items received earlier should leave the warehouse before newer stock.

Best for: Non-perishable goods, products with gradual obsolescence risk, and operations where maintaining chronological flow simplifies tracking and reduces the chance of aging inventory.

Example​

  • Batch A: Received 2026-01-10, Expires 2026-06-15
  • Batch B: Received 2026-02-05, Expires 2028-05-20
  • Batch C: Received 2026-03-01, Expires 2027-07-10

Under FIFO, Batch A (received 2026-01-10) is selected first because it has the earliest receipt date.

Custom​

A custom inventory management method uses your business rules to determine how inventory bathes are assigned to orders. It can use a mix of FIFO, FEFO, or something completely different.

To use a custom method contact support.