Business Context

We are a security systems distributor handling high-value, serialized products such as IP cameras, NVRs, and RAID storage systems. Each unit is uniquely identified by a serial number and arrives in separate shipments at varying purchase costs. For businesses like ours, FIFO produces inaccurate COGS because:

1. We regularly hold the same SKU across multiple lots purchased at different costs. FIFO arbitrarily assigns the oldest lot's cost, which may bear no relationship to the actual unit sold.

2. High-value items are individually serialized, meaning the actual cost of each unit sold is known and traceable — there is no need to assume a cost order.

3. Landed costs (freight, customs, insurance) vary by shipment and must be allocated to specific units, making lot-level cost accuracy essential for true COGS reporting.

The Request

Please introduce Specific Identification as a third inventory costing method alongside FIFO and WAC.

Under this method:

- Each unit is assigned its actual purchase cost at the point of goods receipt, linked to its serial number or lot

- When a unit is sold, COGS is posted based on that specific unit's recorded cost — not an assumed order

- Landed costs can be allocated to specific lots and added to each unit's total cost basis

- For items without serial tracking, FIFO or WAC would continue to apply as today

Why This Matters

Specific identification is a recognised inventory costing method under both GAAP and IFRS, and is the most appropriate method for businesses dealing in high-value, distinguishable goods. Without it, distributors of security equipment, electronics, vehicles, jewellery, and other serialized products cannot produce accurate gross margin reports or reliable inventory valuations from Zoho Books alone.

Currently the only workaround is to build a custom application outside of Zoho Books to track serial-level costs and post manual journal entries — significant overhead that a native feature would eliminate.

This feature would make Zoho Books genuinely viable for a much broader range of distributors and wholesalers who currently have to look outside the Zoho ecosystem for costing accuracy.

Thank you for considering this request.