- In the Admin panel, go to Settings – Trade points, and select a trade points
- In the window that opens, edit the Inventory accounting method – select the method that suits you:
- the last cost price;
- average cost price.
- Click Save
Average cost price method
- This method is the easiest to account for. The average cost of goods is determined by the following formula:
Average cost of goods = (cost of goods at the beginning of the month + cost of goods received per month) / (quantity of goods at the beginning of the month + quantity of goods received per month)
Calculation example using the average cost method:
- There were 20 packs of cookies left in the store at a purchase price of $ 15. During the month, another 16 packs of cookies were delivered in two batches – 8 $ 28 and 8 $ 20. We calculate the average cost.
Product cost at the beginning of the month: 20 X 15 = 300
The cost of the 1st new delivery of the Goods: 8 X 28 = 224
The cost of the 2nd new delivery of the Goods: 8 X 20 = 160
Average Product Price: (300 + 224 + 160): (20 + 16) = 19
- At this average cost, the written-off goods will be considered and the profit will be calculated. For example, if a pack of cookies sells for $ 40, and 250 packs of cookies were sold in a month, the profit for that particular cookie will be calculated as follows:
250 X 40 – 250 X 19 = 5250 $