Dispensing of raw materials as per fifo/fefo


(MADHUSUDHAN) #1

We have received Raw material on 01/01/2018 which has expired on 2020 and after two months we have received another consignment on 01/04/2018 with the expiry 2019.

We have dispensed from 01/01/2018 to till 31/03/2018 from the first consignment which has expiry date of 2020 and left with some quanity. Now we have to dispense the material on 01/04/2018 of the same material.

By following the FIFO you have to dispense the material received on 01/01/2018. if you follow FEFO then you need to dispense the second consignment as the expiry date is on 2019.

Now the question is which method to be followed .


(Ankur Choudhary) #2

It is necessary to use the material has the nearest expiry date means you should follow FEFO first and if expiry is same then follow FIFO.
I hope this helps.


(Madeeha batool) #3

Matetial having near expiry date should be consumed first…


(Ankur Choudhary) #4

Yes, first follow FEFO and then FIFO.


(AJAY ) #5

Tq Sir


(Dhiraj Prasad) #6

FEFO METHOD WE HAVE FOLLOW


(Amit Kalyan) #7

IN CASE OF RM FOLLOW FEFO & IN CASE OF PM FOLLOW FIFO…