Setting up FIFO?

Shopify Discussion

Topic summary

Users are seeking a solution to implement FIFO (First-In-First-Out) inventory accounting in Shopify when the same product has multiple purchase costs.

Core Challenge:

  • When identical items are purchased at different prices (e.g., Item A at $1.00 last year, same Item A at $1.50 this year), Shopify doesn’t natively track which cost basis to use when items sell.
  • Stocky app is unavailable to one user (requires POS) and uses weighted average cost (WAC) rather than FIFO anyway.

Current Workarounds & Limitations:

  • Manually calculating weighted average costs when updating inventory
  • Creating duplicate product listings (draft/active) to separate cost batches—impractical for identical items that can’t be variants
  • Some apps track FIFO for reporting purposes but don’t generate proper FIFO-based journal entries for accounting systems like QuickBooks

Status: The discussion remains unresolved, with both participants confirming they face the same issue and haven’t found an adequate solution for true FIFO accounting integration.

Summarized with AI on October 24. AI used: claude-sonnet-4-5-20250929.
1

I do not qualify for Stocky because we do not do POS. How can I account for a product that has two product costs?

Item A purchased last year 5 available 1.00 product cost

Same Item A purchased this year from same vendor 10 available 1.50 product cost

I have read several articles and tried several apps and have not found a way to achieve this without entering a new Item A that I would then have to remember to change from Draft to Active when the old Item A sold out. Since both Item A’s are identical, I cannot make the higher cost Item A a variant of the older item. Right now when I change the inventory, I am changing the product cost to weighted average, but it is left to me to figure that out, and isn’t correct if I am using FIFO. Surely I am not the only one with this issue?

2

Same issue!
Trying to find some app or platform that manages true FIFO on Shopify. Stocky seemed like a valid option to combine with MyWorks Sync to Quickbooks but Stocky uses WAC, not FIFO. I have found several apps that track and report FIFO in reporting but not for accounting purposes. I need to be sure the journal entries into Quickbooks recording COGS is based on FIFO.

4

yes i’ll take a demo. Message me.