FEFO against FIFO
Most of the time the two agree: what came in first expires first. They part company when a later delivery carries an earlier expiry — a supplier clearing old stock, or two suppliers of the same item. Then FIFO sells the newer, longer-lasting goods first and leaves the short-dated ones to expire on the shelf.
FEFO needs batches (lots): each delivery recorded with its quantity, its expiry and its cost. That is also what makes wastage visible — the batch that went off is a named batch, with a cost, not a vague shortfall at the next stock count.
It matters most where things go off: dairy, bakery, packaged food, sweets, medicines.
Example
Monday's delivery: 20 packets of paneer expiring on the 9th. Wednesday's: 20 packets expiring on the 8th. FIFO sells Monday's first; FEFO sells Wednesday's first, because they expire a day sooner.
How Nivasik handles it
- Batches (lots) with their own cost and expiry, used first-expired-first-out, and wastage recorded when stock goes off.
- Every delivery leaves a lot, even without an expiry date — a sack of rice has no date and is still a purchase at a price.
- When the same item is on the shelf at two prices, the counter can ask which one is being sold, and the stock comes off the lot that was actually sold.