Below is an example of product valuation for serialized inventory when FIF (FIFO) is the cost method on the Product-Sites record, Cost tab.

SERNA01100043 – 45  -- received at $100  Total: $300

SERNA01100046 – 48  -- received at $200  Total: $600

SERNA01100049 – 51  -- received at $300  Total: $900

                                Total Value:                                     $1800

If I then perform Issue transaction and pull qty 1 for SERNA01100048 and qty 1 for SERNA01100051, due to FIFO rules, the cost used for the issue is $100 because the first three serials were received at $100 (First In).

The valuation total will now be $1600

If I then issue 2 more random serials (SERNA01100049 and SERNA01100050), the first serial will cost at $100 and the second serial will cost at $200. This is true even though these were the last serials I received at $300.

Now my total valuation is $1300

When all the above serials are issued out, the net cost of the issued product does equal the net receipt cost, barring any cost adjustments performed.

This is by design which states:

The issue valuation rule is always applied for valuing inventory issues, regardless of the original value or order of receipt. This will be true for all available cost methods.

Question for the community: How do you manage the inventory when you want to keep track of the cost of the serial at the time of the receipt?
One suggestion was made to create a custom report in SEI (Sage Enterprise Intelligence)