Will my Sage 50 FIFO inventory costs convert to QuickBooks?
It depends on the edition: QuickBooks Pro and Premier value inventory at average cost, so FIFO layers collapse to one cost; Enterprise can keep FIFO.
The short answer: your inventory costs convert, but the costing method may not. QuickBooks Pro and Premier value every inventory item at a single average cost, so the FIFO layers Sage 50 built up usually collapse into one blended cost per item. QuickBooks Enterprise, through its Advanced Inventory feature, can carry FIFO forward. The edition you land in decides what survives.
What happens to FIFO layers in Pro and Premier?
Under FIFO, each purchase adds a cost layer, and each sale draws from the oldest layer first. Average cost works differently. It takes the total value of the units on hand and divides by the units, which gives each item one figure. After a conversion, that figure is what QuickBooks uses for cost of goods sold on the next sale.
If your purchase prices have been stable, the blended cost sits close to the oldest layer and the difference is small. If prices have moved a lot, the first sales after conversion can post a cost that differs from what Sage 50 would have posted. Quantities and total value still balance. What is lost is the split into layers, not the inventory itself.
Can FIFO survive anywhere in QuickBooks?
Yes, in Desktop Enterprise. Its Advanced Inventory feature supports FIFO costing, so a conversion can target FIFO rather than average cost, and the layer structure can be kept to the extent your source file allows. QuickBooks Online values inventory at average cost, so the same collapse applies there. If FIFO matters to your reporting, Enterprise is the destination to plan around.
Steps worth taking before you convert
First, decide whether the layer detail matters. Some businesses need it for margin analysis, contracts, or tax reporting; many find a blended cost acceptable. If the answer is not obvious, your accountant can tell you whether layer detail affects your filings. Second, if you need FIFO, plan the move around Desktop Enterprise rather than Pro, Premier, or Online. Third, ask for an evaluation before anything is converted. Our engineers run a Sage 50 to QuickBooks conversion regularly, and inventory costing is one of the first things we check in a file. What can be preserved depends on the data, and a review of your backup answers that better than any general rule.
The useful next step is simple: send us a copy of your Sage 50 backup and request a free evaluation. We will look at how your inventory is layered, tell you what it becomes in the edition you have in mind, and quote the work before anything starts.