Fleetio unveils LIFO / FIFO parts inventory valuation methods
Accounting and parts tracking can be some of the most challenging chores for fleet managers.
To help, Fleetio added new inventory valuation methods to its list of offerings on Tuesday — LIFO / FIFO (Last-In First-Out, First-In First-Out) — which is an accounting method that Fleetio customers can use to determine their organization’s inventory costs.
The fleet maintenance software company highlighted this addition will help Fleetio customers accurately account for parts and inventory used for fleet repairs, gaining visibility into the full cost of in-house maintenance, while also resulting in a more organized and efficient fleet.
Fleetio explained any organization that buys and resells units can use inventory valuation methods like LIFO / FIFO to attribute when parts came in and when they left.
The LIFO method assumes that the last or most-recent unit to arrive in inventory is sold or used first, with the older inventory left over at the end of the accounting period.
The FIFO method assumes that the first unit making its way into inventory, or the oldest inventory, is sold or used first.
With LIFO / FIFO, Fleetio said a fleet that keeps parts available for vehicle repair or performs in-house maintenance can now attribute the cost of parts to specific vehicles, providing a full view of the total cost of ownership.
The company added that technicians now have the ability to account for costs on work orders accurately based on the price of the part at the time of purchase, which can fluctuate. This results in better alignment with accounting teams regarding the allocation of part costs on work orders.
Fleetio currently offers more than 25 key features, including parts and inventory management, inspections, VIN decoding, work orders and more within the cloud-based software and mobile app, Fleetio Go.
With the addition of new inventory valuation methods to parts and inventory management, Fleetio is adding another layer to its library of features that can help organization track, analyze and improve their fleet operations across the globe.
“We want to make sure our customers have all the information they need to make smart decisions about their fleets. This new feature is one more way we're helping them do that,” Fleetio product marketer Shay Misra said.
Robin Patterson is deputy director of fleet services for Harris County in Texas.
“The FIFO/LIFO inventory valuation feature is necessary to track the value for financial reporting purposes and internal controls over the assets. It is easy to track and the valuation feature works well,” Patterson said in the news release.