First Expired - First Out (FEFO)

Also known as: FeFo principle

First Expired – First Out (FEFO) bezeichnet ein Verfahren in der Warehousing. Vermögenswerte die zuerst ablaufen werden zuerst ausgelagert und verwendet.

Definition / explanation

First Expired - First Out means translated "first expired - first out" and is mostly abbreviated as FEFO. The FEFO is a storage method for assets. Elements that run off first are used first, thus minimizing the risk of overlapping (e.g. food).

Differences between FEFO and FIFO

  • FIFO- and LIFO procedures are the most common
  • With FEFO the best before date is decisive, with FIFO the receipt of goods
  • The FEFO minimizes the risk of warehousing and is associated with higher costs, the FIFO is less costly and simpler
  • the FEFO is used in the food and pharmaceutical industries, the FIFO in the metal industry

Application in commercial law and tax law

  • First Expired - First Out is not recognized in the commercial balance sheet valuation
  • Only the FIFO and the LIFO principle, The LIFO procedure is recognized for tax purposes
  • es wird bilanzrechtlich anerkannt, dass das Bewertungsverfahren nicht mit der tatsächlichen Lagerhaltung übereinstimmt, daher kann für Bewertungszwecke in der trade balance das FIFO- und LIFO-Verfahren genutzt werden, auch wenn mit dem FEFO-Prinzip gearbeitet wird
  • However, there is a breach of proper bookkeeping if lower valuations are deliberately brought about and the procedures do not contribute to simplification


  • assets that expire first are outsourced first
  • The best-before date is decisive for removal
  • Use in the pharmaceutical and food industries
  • Not recognized under commercial or tax law
  • The FEFO process is used to minimize risks in storage
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