The largest expense item on a retail Profit and Loss statement (P&L) is Cost of Goods Sold (COG). The value of your COG charge can vary between being costed as initially purchased (FIFO), or recently purchased (LIFO). Despite the inventory costing methodology you may opt for, eventually all your product cost will be reflected on your P&L. Too much inventory will cost your business money in the form of carrying cost and eventual markdowns. I suggest that you create a well-thought-out list of inventory data to export from your perpetual stock ledger.

Source: Forbes July 29, 2020 14:48 UTC