Yes. FieldHub values inventory using First In, First Out (FIFO): when a part is issued to a work order or sold, the cost recorded is the cost of the oldest units of that part still in stock. FIFO is the only costing method in FieldHub, so every customer’s cost of goods sold, inventory valuation, and job costing are calculated the same, auditable way.
Why FIFO fits security and low-voltage integrators
- Distributor prices move, and your job costs should follow. Panels, cameras, and cable are bought in lots at different prices over the year. FIFO charges each job the actual cost of the units that were on the shelf, rather than a blended average that hides which project absorbed the price increase.
- Inventory on the balance sheet reflects what you paid most recently. Because the oldest costs leave first, the units remaining are valued at current purchase prices, which is what your bank, your accountant, and a prospective buyer of the business want to see.
- It is the method accountants expect. FIFO is accepted under GAAP and by the IRS, and it needs no special election or recordkeeping. It also matches how technicians actually pull stock from the shelf.
- It replaces a QuickBooks weak spot. QuickBooks defaults to average cost and reserves FIFO for Enterprise. Integrators that consolidate onto FieldHub get FIFO costing tied directly to work orders, trucks, and bins with no add-on. See replacing QuickBooks and Warehouse Management.
The one exception: reserved parts
When you receive parts for a specific project, you can reserve them to that work order at receipt. Reserved units are allocated to that job from the start and are not consumed by the FIFO stock rules for other jobs. Each project is billed the cost of the exact parts bought for it, while the rest of your inventory keeps flowing FIFO. Customers can read the setup steps in the Managing Material Reservations article (customer login required).
