---
title: Sage 300 Inventory Control Costing Methods
description: Different Sage 300 inventory control costing methods can be used to value inventory and determine cost of goods sold in Sage 300 Inventory Control. 
---

[Equation Tech Blog ](https://www.equationtech.us/sage-accpac-blog)

# [Sage 300 Inventory Control Costing Methods](https://www.equationtech.us/sage-accpac-blog/sage-300-inventory-control-costing-methods)

 Written by [Erica Burles](https://www.equationtech.us/sage-accpac-blog/author/erica-burles) | Tue, Jul 30, 2019

Different costing methods can be used to value inventory and determine cost of goods sold in Sage 300 Inventory Control.  The costing method is assigned to Account Sets (IC Options / Account Sets), and account sets are assigned to items. 

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Therefore, it is possible to have different items being costed in different ways.  Following is a brief overview of the most common costing methods:

1. Moving Average:  Inventory Control combines the costs of all items at an individual location, so that the costs of one item are not able to be identified from the costs of another. The unit cost of an item is the total cost of all items in the location divided by the total quantity of items at the location – at that specific point in time.

1. Most Recent:  Inventory Control assigns the cost of the most recently received item at the location to all items shipped.

1. FIFO(First In First Out):   Inventory Control assumes that the first units to arrive at a location are the first units shipped. In this way, stock is rotated; old stock is shipped, new stock is stored. 

1. LIFO(Last In First Out):  Inventory Control assumes that the last units to arrive at a location are the first ones shipped. Stock is not rotated; new stock is sold as soon as it arrives and older stock may sit for long periods, until all stock is shipped.

1. Standard: Standard costs can be predetermined targets that are useful in building budgets and gauging performance. This method might be used if the item costs do not vary much, or if stock turnover is rapid.  

1. User-Specified: User-specified costing allows the user to enter costs for items as they are shipped. It is mandatory to use this costing method for all non-stock items but it can also be used for stock items. 

For a more detailed review of these and other costing methods, check out our training session on  [Inventory Control Costing Methods](https://www.equationtech.us/sage-webinar-training-events) and other topics by scrolling to the bottom of our training page. You can also see another blog post on the [Difference between Last Cost and Most Recent Cost](https://www.equationtech.us/sage-accpac-blog/sage-inventory-costing-methods)  Still have questions?  Give us a call at 866-436-3530 or email [support@equationtech.us](mailto:support@equationtech.us). We’re here to help!

[View full post](https://www.equationtech.us/sage-accpac-blog/sage-300-inventory-control-costing-methods)

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