It seems like you're already familiar with the concept of LIFO - Last In, First Out, so I'll focus on how to implement it in Excel.
To set up a LIFO inventory management system in Excel, follow these steps:
1. Create a new Excel sheet.
2. In the first row, list out the following column headers: Item, Date, Quantity In, Quantity Out, Remaining Quantity, and Value.
3. Enter your inventory items, dates, and quantities in the corresponding columns.
4. In the 'Remaining Quantity' column, use the formula =SUM(C2-D2) where C2 is the Quantity In and D2 is the Quantity Out.
5. Copy this formula down the column to maintain an ongoing tally of your remaining inventory.
Remember, under the LIFO method, the last item added to the inventory is the first one to be removed. So, when reporting the remaining inventory value, you'll need to account for the cost of the most recent additions first.
While I've provided a simplified version of LIFO inventory management in Excel, please note that actual implementation can be quite complex, especially for larger inventories. It might be beneficial to consider using dedicated inventory management or accounting software that can automate these processes.
As you are located in Jamshedpur, India, please be aware of the Indian Accounting Standards (Ind AS) and any applicable tax laws related to inventory management.
Hope this helps!