Yes, Dynamics 365 Business Central offers robust support for advanced inventory costing methods, including both LIFO (Last-In, First-Out) and FIFO (First-In, First-Out), to ensure precise inventory valuation and accurate financial reporting. Here’s how Business Central enables these methods: LIFO (Last-In, First-Out): Business Central allows you to utilize the LIFO method, which assumes that the most recently acquired inventory items are the first to be sold. This method can be beneficial for businesses aiming to minimize taxable income by matching higher recent costs against revenue. FIFO (First-In, First-Out): Dynamics 365 Business Central Implementation also supports the FIFO method, where the first items purchased are assumed to be the first sold. This method can provide a more accurate representation of current inventory value and may align better with certain business models. Benefits of Using LIFO and FIFO with Dynamics 365 Business Central: Accurate Valuation: By employing LIFO or FIFO, businesses can ensure that their inventory is valued accurately based on the chosen costing method, contributing to more precise financial reporting and decision-making. Take the assistance of one of the reputed Microsoft Dynamics 365 Business Central partners. Compliance and Transparency: These methods align with generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), enhancing compliance and transparency in financial reporting. Tax Efficiency: The selection of LIFO or FIFO can impact tax liability. Businesses can choose the method that best aligns with their tax strategies and financial goals. Business Insights: Utilizing advanced inventory costing methods enhances the accuracy of the cost of goods sold (COGS) calculations, providing clearer insights into profitability and operational performance. Flexible Configuration: Dynamics 365 Business Central offers flexible configuration options, allowing businesses to choose the inventory costing method that best suits their operational and financial requirements. Automated Tracking: Business Central automates the tracking of inventory movements and cost changes, reducing manual efforts and the potential for errors. Real-time Reporting: With real-time data integration, Business Central provides instant access to inventory costs and valuation, supporting timely decision-making. Once you are through with Business Central implementation, you can benefit from reporting in real-time.