The main configuration and setup of inventory costing in Microsoft Dynamics 365 for Finance and Operations is in Item model groups, where we identify the inventory costing valuation method. For inventory model groups, navigate to Inventory management | Setup | Inventory | Item model groups. Microsoft Dynamics 365 for Finance and Operations supports the following inventory valuation methods:
- FIFO: This is first in, first out
- LIFO: This is last in, first out
- LIFO date: This is the last-in, first-out date
- Weighted avg.: This is the weighted average
- Weighted avg. date: This is the weighted average date
- Standard cost: This is the standard cost
- Moving average: This is the moving average cost
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