Currently, D365 does not support FIFO Logic if you are using the Serial Number Dimension with Serial Number Controlled Items and Standard Cost. I believe this is a major gap in the logic because most manufacturing companies that build to stock would prefer to sell the oldest items first.

FIFO method follows the natural flow of inventory; most businesses prefer to sell their oldest products first, knowing that these are most likely to lose value due to long-term storage. This also means that the company's accounts will better reflect the value of current inventory since the unsold products are also the newest ones. Not all companies have items that expire, but would still want to use FIFO.

There are two ways this could be somewhat easily implemented, I think.

1. One idea would be to implement this logic during the Automatic reservation process. It could look at the Serial Number MFG Dates, or simply the earliest Transaction dates to determine the FIFO logic.
2. Another idea would be to add a Location directive strategy for this so that during the creation of the Work, it would use FIFO logic.

Thanks for your consideration.