{"id":8205,"date":"2025-11-07T14:55:34","date_gmt":"2025-11-07T08:55:34","guid":{"rendered":"https:\/\/www.hishabpati.com\/?p=8205"},"modified":"2025-11-07T14:55:35","modified_gmt":"2025-11-07T08:55:35","slug":"what-is-the-lifo-method-and-how-does-it-work-in-hishabpati","status":"publish","type":"post","link":"https:\/\/www.hishabpati.com\/en\/what-is-the-lifo-method-and-how-does-it-work-in-hishabpati\/","title":{"rendered":"What is the LIFO (Last In First Out) method, and how does it work in HishabPati?"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"8205\" class=\"elementor elementor-8205\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-eb78c9b e-flex e-con-boxed e-con e-parent\" data-id=\"eb78c9b\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9643d35 elementor-widget elementor-widget-text-editor\" data-id=\"9643d35\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In many businesses, when new products are purchased, it is often seen that the newly arrived products are sold first. In accounting terms, this principle is called <\/span><b>LIFO method (Last In, First Out). Means the product that arrived last will be sold first.<\/b><span style=\"font-weight: 400;\">.<\/span><\/p><p><span style=\"font-weight: 400;\">For small and medium businesses in Bangladesh (such as auto-mobile, hardware, rods-cement, etc.), LIFO can be a practical method. When managing stock in a business, it is very important to keep accurate records of at what price products are sold and how much profit is being made. <\/span><b>LIFO (Last In, First Out)<\/b><span style=\"font-weight: 400;\"> is a method in which it is assumed that the products purchased last are sold first.<\/span><\/p><p><b>Advantages of the LIFO method in business-<\/b><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It\u2019s easy to understand( the products purchased later are sold first.)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stock cost calculation becomes easier.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is more effective for products that can be stored for a long time or have a low risk of spoilage.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Let\u2019s now discuss in detail the LIFO method and its use in the HishabPati app.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-26c2f87 elementor-toc--minimized-on-tablet elementor-widget elementor-widget-table-of-contents\" data-id=\"26c2f87\" data-element_type=\"widget\" data-settings=\"{&quot;exclude_headings_by_selector&quot;:[],&quot;marker_view&quot;:&quot;bullets&quot;,&quot;no_headings_message&quot;:&quot;No headings were found on this page.&quot;,&quot;headings_by_tags&quot;:[&quot;h2&quot;,&quot;h3&quot;,&quot;h4&quot;,&quot;h5&quot;,&quot;h6&quot;],&quot;icon&quot;:{&quot;value&quot;:&quot;fas fa-circle&quot;,&quot;library&quot;:&quot;fa-solid&quot;},&quot;minimize_box&quot;:&quot;yes&quot;,&quot;minimized_on&quot;:&quot;tablet&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\tThis blog contains- \t\t\t<\/h4>\n\t\t\t\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--expand\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__26c2f87\" aria-expanded=\"true\" aria-label=\"Open table of contents\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--collapse\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__26c2f87\" aria-expanded=\"true\" aria-label=\"Close table of contents\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n\t\t\t\t\t<\/div>\n\t\t<div id=\"elementor-toc__26c2f87\" class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<i class=\"elementor-toc__spinner eicon-animation-spin eicon-loading\" aria-hidden=\"true\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a35da4 elementor-widget elementor-widget-text-editor\" data-id=\"2a35da4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2><b>In HishabPati, how will a batch or lot be determined?\u00a0<\/b><\/h2><p><span style=\"font-weight: 400;\">In business, whenever you purchase products, HishabPati treats each purchase as a <\/span><b>separate batch<\/b><span style=\"font-weight: 400;\"> &amp; will be tracked accordingly.\u00a0\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you purchase 50 pieces at 100 BDT each for the first time \u2192 this will be <\/span><i><span style=\"font-weight: 400;\">First Batch<\/span><\/i><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next time, if you purchase 50 pieces at 120 BDT each \u2192 this will be <\/span><i><span style=\"font-weight: 400;\">Second Batch<\/span><\/i><\/li><\/ul><p><span style=\"font-weight: 400;\">In this way, every time products are purchased at a new price, they will be recorded as a new batch. In HishabPati, besides purchasing products, you can also add products to stock. For example\u2014 <\/span><b>By Increasing Stock from Stock Adjustment. <\/b><span style=\"font-weight: 400;\">If, after the above two purchases, you increase the stock through stock adjustment, it will be added as the third batch.\u00a0<\/span><\/p><p>Similarly, whenever you add a product\u00a0<b>you can add a purchase price &amp; its initial stock.<\/b>\u00a0<\/p><p>When adding a product, if you include the previous stock and purchase price \u2014 or even after making several purchases, if you edit the product and add the previous stock \u2014 the previous stock will always be added as the first batch.<\/p><p><span style=\"font-weight: 400;\">On HishabPati\u2019s product list page, you can view both the purchase price and the selling price of each product. While using the FLFO policy, you will see the purchase price of the last batch currently in stock.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-21294d3 elementor-widget elementor-widget-image\" data-id=\"21294d3\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"375\" height=\"695\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page.png\" class=\"attachment-large size-large wp-image-8175\" alt=\"product page\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page-162x300.png 162w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a2d45d7 elementor-widget elementor-widget-text-editor\" data-id=\"a2d45d7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In the web version, you\u2019ll find a stock details icon next to each product. In the app, you can access it by tapping the three-dots icon. When you tap the stock details icon, you\u2019ll be able to see the purchase price and stock quantity of each batch currently in stock.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-24ae42c elementor-widget elementor-widget-image\" data-id=\"24ae42c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"375\" height=\"695\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page2.png\" class=\"attachment-large size-large wp-image-8176\" alt=\"product page2\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page2.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page2-162x300.png 162w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/product-page2-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c3d5953 elementor-widget elementor-widget-text-editor\" data-id=\"c3d5953\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Those who are using HishabPati already <\/b><span style=\"font-weight: 400;\">For each of their products, the current stock and the current purchase price will be considered the first batch and its purchase price. Then, when new purchases or stock adjustments are made, those will be recorded sequentially as the second, third, and subsequent batches.&nbsp;<\/span><\/p>\n<h2><b>How will profit\/loss and stock value be determined under the LIFO policy?&nbsp;<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In LIFO policy <\/span><b>the cost of goods sold is based on the purchase price of the last batch,<\/b><span style=\"font-weight: 400;\">followed by the next batches. In other words, products are always sold from the last batch first. Let\u2019s assume you have a single product and its stock is as follows\u2014<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First batch: 100 pieces, purchase price 50 BDT per piece \u2192 total cost 5,000 BDT<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Second batch: 100 pieces, purchase price 60 BDT per piece \u2192 total cost 6,000 BDT<\/span><\/li>\n<\/ul>\n<p><b>Total Stock<\/b><span style=\"font-weight: 400;\"> = 200 pieces<\/span><span style=\"font-weight: 400;\"><br><\/span><b>Total Stock Value<\/b><span style=\"font-weight: 400;\"> = 5,000 + 6,000 = 11,000 Taka<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then you sold 120 pieces at a selling price of 70 BDT each.&nbsp;<\/span><\/p>\n<h3><b>According to the LIFO method, the cost of goods sold (COGS):<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First 100 pieces from the Second batch \u2192 100 \u00d7 60 = 6,000 BDT<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next 20 pieces from the first batch \u2192 20 \u00d7 50 = 1,000 Taka<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total COGS (Cost of Goods Sold) = 6,000 + 1,000 = 7,000 Taka<\/span><\/li>\n<\/ul>\n<p><b>Sales revenue:<\/b><span style=\"font-weight: 400;\"> 120 \u00d7 70 = 8,400 BDT<\/span><span style=\"font-weight: 400;\"><br><\/span><b>Profit:<\/b><span style=\"font-weight: 400;\"> 8,400 \u2013 7,000 = 1,400 Taka<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After the sale, your remaining stock will be\u2014<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First batch: 80 pieces, purchase price per piece 50 Taka \u2192 Total cost = 4,000 Taka&nbsp;&nbsp;<\/span><\/li>\n<\/ul>\n<p><b>Total Stock Value<\/b><span style=\"font-weight: 400;\"> = 4000 Taka&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this way, the combined total of all your products will be your total stock value. In HishabPati\u2019s stock summary report, you can see the stock value of each product, and by tapping on it, you can view the purchase price and quantity of each batch.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Along with the overall profit or loss, you can see how much profit or loss was made on each sale directly on the sales page. <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae8b598 elementor-widget elementor-widget-image\" data-id=\"ae8b598\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"323\" height=\"1024\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/final-add-product-lifo-323x1024.png\" class=\"attachment-large size-large wp-image-8207\" alt=\"final add product lifo\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/final-add-product-lifo-323x1024.png 323w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/final-add-product-lifo-95x300.png 95w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/final-add-product-lifo-4x12.png 4w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/final-add-product-lifo.png 375w\" sizes=\"(max-width: 323px) 100vw, 323px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-08327c6 elementor-widget elementor-widget-text-editor\" data-id=\"08327c6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">For security reasons in the Business package, only the owner can view the profit or loss of each transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In HishabPati, you can view the profit and loss report based on sales and also see how the profit was determined. By clicking on \u201cView Details\u201d in this report, you can easily understand which product, from which batch, and how many units were sold.&nbsp;<\/span><\/p>\n<h2><b>What happens if you  edit a purchase after a sale?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s assume your stock was:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First batch: 100 pieces, 50 BDT per piece<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Second batch: 80 pieces, 60 BDT per piece<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You sold 120 pieces at 70 Taka Sales Price \u2192 according to LIFO<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First 80 pieces (60 Taka each)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next 40 pieces (50 Taka each)<\/span><\/li>\n<\/ul>\n<p><b>Profit = <\/b><span style=\"font-weight: 400;\">1,600 Taka, remaining stock = 60 pieces (from the 50 Taka batch)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, if you <\/span><b>If you mistakenly entered the purchase price of the first batch as 50 Taka but then edit that purchase transaction to 55 Taka,<\/b><span style=\"font-weight: 400;\"> here\u2019s what will happen-<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The new stock value of the remaining 60 pieces will be \u2192 60 \u00d7 55 = 3,300 Taka<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the future, when sold, the COGS (Cost of Goods Sold) will be calculated based on the new purchase price.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The sale made before this edit will remain unchanged. The profit or loss for that sale will stay the same as before.<\/span><\/li>\n<\/ul>\n<h2><b>What happens if you update a sales transaction?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s assume your stock was-<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First batch: 100 pieces, 50 BDT per piece<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Second batch: 80 pieces, 60 BDT per piece<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You sold 120 pieces at 70 Taka Sales Price \u2192 according to LIFO<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First 80 pieces (60 Taka each)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next 40 pieces (50 Taka each)<\/span><\/li>\n<\/ul>\n<p><b>Profit = <\/b><span style=\"font-weight: 400;\">1,600 Taka, remaining stock = 60 pieces (from the 50 Taka batch)<\/span><\/p>\n<h3><b>Some examples of editing a sales transaction<\/b><\/h3>\n<p><b>1. Change in sales quantity<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, the sale changes from 120 \u2192 100 pieces<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">20 pieces will return to stock (to the first batch of 50 Taka, as returned items always go back to the same batch and are valued at that batch\u2019s purchase price).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The stock value will be updated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The profit from the sale will also be updated according to the new calculation.<\/span><\/li>\n<\/ul>\n<p><b>2. Selling Price Change<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, the selling price changes from 70 \u2192 80 BDT per piece.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">COGS will remain the same, but the sales revenue will increase.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As a result, the profit will increase.<\/span><\/li>\n<\/ul>\n<p><b>3. Change of product in the sale<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, some products were removed or new products were added.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The stock will automatically decrease or increase according to the respective batches.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The profit or loss will be updated according to the new calculation.<\/span><\/li>\n<\/ul>\n<h2><b>What happens when a sale is returned under the LIFO (Last In, First Out) method?<\/b><\/h2>\n<p><b>Sales Return<\/b><span style=\"font-weight: 400;\"> means\u2014some of the products that were sold earlier are returned by the customer.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you process a sales return from a specific sale, under the LIFO method, the returned products will go back into stock <\/span><b>at the purchase price of the batch from which they were originally sold<\/b><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If all products from a batch are already out of stock, a new batch will be created in that case.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And if you do not process the sales return under a specific sale, the returned products will be added to stock at their original purchase price as a new batch.&nbsp;<\/span><\/li>\n<\/ul>\n<div><b>Impact on profit\/loss:<\/b><\/div>\n<div>\n<ul>\n<li aria-level=\"1\">Overall sales revenue will decrease due to returned goods.<\/li>\n<\/ul>\n<\/div>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overall profit or loss will be automatically updated according to the new accounts.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stock value will also increase accordingly.&nbsp;<\/span><\/li>\n<\/ul>\n<h2><b>What happens when a purchase is returned under the LIFO (Last In, First Out) method?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Purchase return means\u2014you will return the goods you previously purchased to the supplier for any reason and take the money back.&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to the LIFO method, if a purchase is returned from a specific sale, the returned items go back to the same batch and are valued at that batch\u2019s purchase price.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you wish to provide a different purchase price during the purchase return, you can do so, and that will impact the Supplier's party balance. However, the goods will be removed from stock based on the batch's original purchase price, and the cost of the remaining goods in that batch will remain unchanged.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can also change this if you wish, by updating the purchase price of that specific purchase transaction.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And if you do not make a purchase return under a specific purchase, the stock will decrease from the last batch (newest one) according to LIFO.&nbsp;&nbsp;<\/span><\/li>\n<\/ul>\n<h2><b>How can the LIFO (Last-In, First-Out) method be affected by offline use?&nbsp;&nbsp;<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Since the HishabPati app can be used offline, you can perform all types of activities, including Purchase and Sales, under the LIFO policy even when offline. Whenever your device comes back online, the data will automatically be transferred to the server. However, some situations may arise in this case.<\/span><\/p>\n<p><b>For Example: <\/b><span style=\"font-weight: 400;\">when you made a sale offline, it was from a batch with a purchase price of 100 Taka. But before your device came back online, another employee in your organization, using a different device, sold the same product online from that very same batch with the 100 Taka purchase price. In this situation, the product has already been reduced from that batch on the server. When your device returns online, three situations may arise.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Situation 1:<\/b><span style=\"font-weight: 400;\"> Even though there was an online sale, this batch still has the same amount of product that you sold offline.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Situation 2:<\/b><span style=\"font-weight: 400;\"> After the online sale, there is not enough product left in this batch for the amount you sold offline, but that amount of product is available in the subsequent batches.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Situation 3:<\/b><span style=\"font-weight: 400;\"> After the online sale, the amount of product you sold online is not available, even across all batches combined, or there is none at all.&nbsp;&nbsp;<\/span><\/li>\n<\/ul>\n<h2><b>Special provisions in HishabPati for accounting transparency<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">HishabPati is always committed to maintaining business transparency. For this purpose, two types of icons are used on the right side of each sale in the sales list page\u2014<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>One is the purple check mark (\u2713) icon:<\/b><span style=\"font-weight: 400;\"> This icon means that the transaction, whether done online or offline, has been saved on the server exactly as it was recorded. There is no complication. It will be applicable for situation 1.&nbsp;<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The other one is the yellow exclamation (!) icon:<\/b><span style=\"font-weight: 400;\"> This icon means that the transaction, as recorded offline, could not be synced exactly the same way when going online. Some details are incomplete, and the system will notify you to complete them. It will be applicable for situation 2 &amp; 3.&nbsp;<\/span><\/li>\n<\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-39e7e8e elementor-widget elementor-widget-image\" data-id=\"39e7e8e\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"375\" height=\"794\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Sales-list-page.png\" class=\"attachment-large size-large wp-image-8178\" alt=\"Sales list page\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Sales-list-page.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Sales-list-page-142x300.png 142w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Sales-list-page-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9d53dd2 elementor-widget elementor-widget-text-editor\" data-id=\"9d53dd2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Tap\/click on the yellow exclamation sign to find out what kind of changes have been made or what is incomplete. This will take you to the 'Adjusted Records' page.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5318286 elementor-widget elementor-widget-image\" data-id=\"5318286\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"375\" height=\"794\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record.png\" class=\"attachment-large size-large wp-image-8179\" alt=\"Adjusted Record\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record-142x300.png 142w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-90f4ff2 elementor-widget elementor-widget-text-editor\" data-id=\"90f4ff2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">A single transaction may contain many products. The number of products that require adjustment will appear on this page. <\/span><span style=\"font-weight: 400;\"><\/span><\/p>\n<p><\/p>\n<h2><b>Tapping on a specific product in the list will show the details.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If the second situation arises, meaning you sold the product offline but upon coming online, it's found that the required amount of product is not in that specific batch but is available in subsequent batches, then the adjustment will happen automatically from the subsequent batches. You will be able to see that, as shown in the image below. <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-26c58ac elementor-widget elementor-widget-image\" data-id=\"26c58ac\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"375\" height=\"794\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record2.png\" class=\"attachment-large size-large wp-image-8180\" alt=\"Adjusted Record2\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record2.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record2-142x300.png 142w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record2-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3e53186 elementor-widget elementor-widget-text-editor\" data-id=\"3e53186\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">On the left column, you will see the purchase price of the product you sold offline. And on the right, you will see which subsequent batch the adjustment was made from after coming online. Accordingly, the profit-loss of this transaction has also been automatically adjusted. Here you will find two buttons. Tapping OK on the adjustment for all products will turn the yellow exclamation sign next to the transaction into a checkmark.\u00a0\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">If the third situation arrived meaning you sold the product offline but upon coming online, it was found that the required amount of product is not in stock, so the adjustment could not be made. The transaction remains in this state. Due to this, the OK button is inactive, and an adjustment button is also inactive.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5515507 elementor-widget elementor-widget-image\" data-id=\"5515507\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"375\" height=\"794\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record5.png\" class=\"attachment-large size-large wp-image-8181\" alt=\"Adjusted Record5\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record5.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record5-142x300.png 142w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record5-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3d040b7 elementor-widget elementor-widget-text-editor\" data-id=\"3d040b7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">When you add the product back to stock, the adjust button will become active.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d93d9e elementor-widget elementor-widget-image\" data-id=\"5d93d9e\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"375\" height=\"794\" src=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record6.png\" class=\"attachment-large size-large wp-image-8182\" alt=\"Adjusted Record6\" srcset=\"https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record6.png 375w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record6-142x300.png 142w, https:\/\/www.hishabpati.com\/wp-content\/uploads\/2025\/11\/Adjusted-Record6-6x12.png 6w\" sizes=\"(max-width: 375px) 100vw, 375px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-56d986e elementor-widget elementor-widget-text-editor\" data-id=\"56d986e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Then, as usual, tapping the OK button will change the yellow exclamation mark into a checkmark. <\/span><span style=\"font-weight: 400;\"><br><\/span><h2><b>Use LIFO Policy at HishabPati<\/b><\/h2><\/p>\n<p><span style=\"font-weight: 400;\">The LIFO method (Last In, First Out) is one of the reliable ways to keep accounts in business. By using the HishabPati app, business owners can seamlessly apply this method both online and offline. If any changes occur while syncing offline data online, users can clearly see them. Ensure your business reports are always updated and your profit-loss calculations accurate with HishabPati!&nbsp;&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=h2-S52mNaSM&amp;ab_channel=HishabPati\"><b>Demo<\/b><\/a><b> - View this &amp; start your journey with HishabPati in three simple steps!<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Step 1: Sign up on HishabPati&nbsp;<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">First, go to the HishabPati website and create an account for your business. Or, to make managing your business easier, download and install the \u2018HishabPati\u2019 app for free today.<\/span><\/p>\n<p><b>\u2705<\/b><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.mindorbital.android.hishabpati&amp;pli=1\"><b>HishabPati Android app<\/b><\/a><\/p>\n<p><b>\u2705<\/b><a href=\"https:\/\/apps.apple.com\/us\/app\/hishabpati\/id6482980950\"><b>HishabPati iOS app<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Then complete the registration. The registration process in HishabPati is very easy and completely free!<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Step 2: Set up your company&nbsp;<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">After signing up, first set up your business profile by providing the necessary information as the owner. Then, set up essential business aspects such as inventory, units, purchases and sales, outstanding balances, invoices, and transactions. After that, start updating daily transactions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Step 3: Enjoy the various features of HishabPati&nbsp;<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once you start managing your business accounts with HishabPati, make sure to utilize the necessary and unique features, such as invoicing, barcode scanning, units, and expense management. To understand how to use HishabPati and its features in detail, watch demo videos in Bengali on YouTube.&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=h2-S52mNaSM&amp;ab_channel=HishabPati\"><b>Digital ledger for income and expenses \u2013 HishabPati demo.<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">HishabPati is a simple and affordable accounting app. Its subscription fees are divided into different durations and offered in budget-friendly packages.<\/span> <a href=\"https:\/\/www.hishabpati.com\/en\/pricing\/\"><b>Learn more about the pricing and features<\/b><\/a><span style=\"font-weight: 400;\"> today in details &amp; choose your desired package.<\/span> <span style=\"font-weight: 400;\">Good luck with your business!<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>\u0985\u09a8\u09c7\u0995 \u09ac\u09cd\u09af\u09ac\u09b8\u09be\u09b0 \u0995\u09cd\u09b7\u09c7\u09a4\u09cd\u09b0\u09c7 \u09af\u0996\u09a8 \u09a8\u09a4\u09c1\u09a8 \u0995\u09cb\u09a8\u09cb \u09aa\u09a3\u09cd\u09af \u0995\u09cd\u09b0\u09df \u0995\u09b0\u09be \u09b9\u09df, \u09a4\u0996\u09a8 \u09a6\u09c7\u0996\u09be \u09af\u09be\u09af\u09bc \u09a8\u09a4\u09c1\u09a8 \u0986\u09b8\u09be \u09aa\u09a3\u09cd\u09af\u0997\u09c1\u09b2\u09cb\u0987 \u0986\u0997\u09c7 \u09ac\u09bf\u0995\u09cd\u09b0\u09bf \u0995\u09b0\u09be \u09b9\u09af\u09bc\u0964 \u0985\u09b0\u09cd\u09a5\u09be\u09ce, \u09af\u09c7\u0997\u09c1\u09b2\u09cb \u09b8\u09cd\u099f\u0995\u09c7 \u09b8\u09b0\u09cd\u09ac\u09b6\u09c7\u09b7 \u09af\u09cb\u0997 \u09b9\u09af\u09bc\u09c7\u099b\u09c7, \u09b8\u09c7\u0997\u09c1\u09b2\u09cb\u0987 \u0986\u0997\u09c7 \u09ac\u09c7\u09b0\u09bf\u09af\u09bc\u09c7 \u09af\u09be\u09af\u09bc\u0964 \u09b9\u09bf\u09b8\u09be\u09ac\u09ac\u09bf\u099c\u09cd\u099e\u09be\u09a8\u09c7\u09b0 \u09ad\u09be\u09b7\u09be\u09af\u09bc \u098f\u0987 \u09a8\u09bf\u09af\u09bc\u09ae\u0995\u09c7 \u09ac\u09b2\u09be \u09b9\u09af\u09bc LIFO \u09aa\u09a6\u09cd\u09a7\u09a4\u09bf (Last In, First Out)\u0964 \u09ae\u09be\u09a8\u09c7, \u09af\u09c7 \u09aa\u09a3\u09cd\u09af \u09aa\u09b0\u09c7 \u098f\u09b8\u09c7\u099b\u09c7, \u09b8\u09c7\u099f\u09be\u0987 \u0986\u0997\u09c7 \u09ac\u09bf\u0995\u09cd\u09b0\u09bf \u09b9\u09ac\u09c7\u0964 \u09ac\u09be\u0982\u09b2\u09be\u09a6\u09c7\u09b6\u09c7\u09b0 \u0995\u09cd\u09b7\u09c1\u09a6\u09cd\u09b0 \u0993 \u09ae\u09be\u099d\u09be\u09b0\u09bf [&hellip;]<\/p>","protected":false},"author":7,"featured_media":8211,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>LIFO \u09aa\u09a6\u09cd\u09a7\u09a4\u09bf (\u09b2\u09be\u09b8\u09cd\u099f \u0987\u09a8 \u09ab\u09be\u09b0\u09cd\u09b8\u09cd\u099f \u0986\u0989\u099f) \u0995\u09c0 \u098f\u09ac\u0982 \u09b9\u09bf\u09b8\u09be\u09ac\u09aa\u09be\u09a4\u09bf\u2019\u09a4\u09c7 \u0995\u09c0\u09ad\u09be\u09ac\u09c7 \u0995\u09be\u099c \u0995\u09b0\u09c7? - \u09b9\u09bf\u09b8\u09be\u09ac\u09aa\u09be\u09a4\u09bf<\/title>\n<meta name=\"description\" content=\"LIFO \u09aa\u09a6\u09cd\u09a7\u09a4\u09bf \u09ac\u09be\u0982\u09b2\u09be\u09a6\u09c7\u09b6\u09c7\u09b0 \u0995\u09cd\u09b7\u09c1\u09a6\u09cd\u09b0 \u0993 \u09ae\u09be\u099d\u09be\u09b0\u09bf \u09ac\u09cd\u09af\u09ac\u09b8\u09be \u09af\u09c7\u09ae\u09a8- \u0985\u099f\u09cb \u09ae\u09cb\u09ac\u09be\u0987\u09b2, \u09b9\u09be\u09b0\u09cd\u09a1\u0993\u09df\u09cd\u09af\u09be\u09b0, \u09b0\u09a1-\u09b8\u09bf\u09ae\u09c7\u09a8\u09cd\u099f \u0987\u09a4\u09cd\u09af\u09be\u09a6\u09bf\u09b0 \u099c\u09a8\u09cd\u09af \u0985\u09a4\u09cd\u09af\u09a8\u09cd\u09a4 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