Should QBO has option of FIFO inventory? and from where I can select the FIFO

In QuickBooks Online, FIFO (First In, First Out) is automatically applied to inventory tracking by considering the initial units purchased as the first ones sold. Let me further clarify how this works, Mshehzad.

QuickBooks automatically uses FIFO as its default inventory method, so there's no option to select it. The system assumes that the first units you purchase are the first ones sold.

Additionally, the FIFO method is designed to streamline your stock management and ensure your financial reports reflect the actual flow of your products. Consequently, this approach impacts your Cost of Goods Sold (COGS) and inventory asset accounts.

For further insights on how this method works, refer to this article: What is FIFO, and how is it used for inventory cost accounting?

Moreover, you can generate an Inventory Valuation Detail report to review your transactions for each inventory item and how they influence quantity on hand, value, and cost.

The information above should help clarify any uncertainties about how QuickBooks utilizes the FIFO method for inventory tracking. You won't have to choose it manually, as the system automatically follows this approach. Best wishes, Mshehzad!