Inventory and kardex in Honduras: average cost or FIFO

By the PymesPros team · Updated on November 3, 2026

Related free calculator: Kardex: FIFO and average cost

What the kardex is and what it must have

• Date of each movement and its type (purchase, sale, adjustment, transfer, physical count).
• Quantity in or out.
• Unit cost and total cost of each movement.
• Balance in quantity and in value after each movement.

Without this record, the cost of what you sold has nothing to back it. That is why everything else (stock, the accounting entry, reports) must come from it and not from separate spreadsheets.

Weighted average or FIFO

Pick one and apply it consistently. With FIFO the order of movements matters: two movements on the same day in a different order give different costs, so the order must be stable (date, then the moment recorded). Unit costs are best kept to four decimals: at two, a product that costs cents and turns over a lot drags an error that later does not balance.

LIFO (last in, first out) is not allowed by IFRS for SMEs, so it should not be offered: with that method financial statements cannot be signed.

When to write the inventory down

IFRS for SMEs (section 13) measures inventory at the lower of cost and net realizable value: what you expect to get by selling it, minus what it costs to sell it. If a product can no longer be sold for what it cost (expired, discontinued, damaged), the difference is already lost, and carrying it on the balance sheet inflates the asset.

Calculating the impairment is not the same as recording it. Writing inventory down involves a journal entry, and the decision belongs to whoever signs the financial statements.

When to reorder

Instead of keeping a "minimum" per product that someone would have to update by hand, the reorder point can be derived from recent real sales: from the last months’ sales you get the daily sales rate, and with the stock on hand, the days of cover left. Below a minimum number of days of cover, buying up to a target number of days is suggested.

Only sales count as demand. A transfer between warehouses or a physical count adjustment says nothing about how much people buy.

Physical count and closing

1. Count what is physically there, by product and by warehouse.
2. Compare against the kardex and document each difference.
3. Record the adjustments with their justification; do not hide them.
4. Reconcile the kardex value against the inventory account before closing the month.

How PymesPros helps

PymesPros calculates the kardex with average cost or FIFO, takes from it the stock, the cost of sales and the accounting entry, assesses impairment against net realizable value, suggests reorders from real recent sales and keeps stock by warehouse. To compare both methods with your movements, use the free kardex calculator.

This guide is informational and does not replace the advice of a licensed public accountant. Rates, ceilings and dates are adjusted by the authorities from time to time: confirm them at the official source before applying them.

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