The consumption subsequent procedure marks a procedure for the simplified buchhalterischen determination of the acquisition and manufacturing costs of homogeneous thes subject of the stock capital in the account system.

In the large and retail trade as well as in the inventory control with the term consumption subsequent procedure is described likewise a fundamental method for the controlling of the goods dispatched.

The consumption subsequent procedure in the account system

In the account system from a fictitious assumption one proceeds, in which the articles are used or sold. This acceptance can be otherwise pertinent time-dependently, price-dependently or however and is part of the balance politics of an enterprise.

According to commercial code (HGB) all forms of the consumption subsequent procedure are permitted, if the subordinated acceptance does not contradict obviously the actual consumption sequence. After general view however the validity of the LoFo procedure is regularly answered in the negative, since the evaluation of the stocks would contradict the minimum value principle to top prices. The German income tax act permits LiFo as only consumption subsequent procedure for the beginning in the tax balance.

The consumption subsequent procedure in trade and inventory control

In the trade as well as in the inventory control the procedure is used to realize over a certain order of the goods dispatched and is part of the assortment politics of an enterprise.

In this use usually only a on one side time-dependent procedure is used: Which lies as the first in the shelves, is to be taken also as the first to the shelves. Particularly in view to perishable goods (e.g. food) this procedure clarifies itself.

Methods of the consumption subsequent procedure

Roofridge in - roofridge out (FiFo)

The time-dependent FiFo method assumes or the purchased goods manufactured first are again used and/or sold also first. This method is in material application (trade & camp) prevailing, since it prevents the aging and a spoiling of goods.

Load in - roofridge out (LiFo)

The time-dependent LiFo procedure assumes and/or the purchased goods manufactured last are first used or sold. Likewise that can be used load in - roofridge Out - procedures with rising prices by e.g. gasoline, wood or coal. One uses the LIFO procedure, in order to keep the goodwill as small as possible.

Highest in - roofridge out (HiFo)

The price-dependent HiFo procedure assumes the most expensively manufactured and/or purchased goods are first used or sold. This method is used, in order to represent in record keeping a high conversion.

Lowest in - roofridge out (LoFo)

The price-dependent LoFo method assumes the most favorably manufactured or purchased goods are first used and/or sold. This procedure leads to a high computational evaluation of the stocks.

Company in - roofridge out (KiFo)

The pertinent KiFo method assumes in the context of the stock valuation in the company conclusion the articles referred by company enterprises are first used or sold.

See also

• Balance

Related links

• Underlying paragraphs of the HGB

Articles in category "Consumption subsequent procedure"

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