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How to setup your inventory settings?

Luminous supports two inventory costing methods: FIFO (First In, First Out) and Weighted Average. This determines how product costs are calculated and reported in your inventory.

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Written by Airam Pabilonia
Updated over 2 months ago

Where to Find the Costing Method Setting:

  1. Click on your name in the lower-left corner(Admin field) of the Luminous platform.

  2. Select System Settings from the menu.

  3. Navigate to Inventory Settings.

  4. Locate the Costing Type dropdown.

  5. Choose between:

    • FIFO (First In, First Out)

    • Weighted Average

⚠️ Note: This setting is different from Cost Allocation Type (Unit-Based, Volume-Based, or Weight-Based), which affects how additional costs like shipping are distributed—not how core product costs are calculated.

To know more about the Cost type and Cost allocation type, please refer to this Knowledge base article:

https://docs.luminousolutions.com/en/articles/11573977-cost-type-vs-cost-allocation-type

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