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FIFO Costing in Work Orders

edited Jan 12, 2026 8:26AM in Ask A Guru 3 comments

Hi Team,

I’m looking for clarification on how FIFO costing works in Work Orders within NetSuite. Could someone please help explain the following:

How does FIFO costing impact component consumption during Work Order processing in NetSuite?

When issuing components to a Work Order, how does NetSuite determine which FIFO cost layers are consumed?

How is FIFO applied to the valuation of finished goods created through Work Orders?

Any insights, examples, or references to official documentation would be greatly appreciated.

Thanks in advance!

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