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Everything about: Cost of Goods & Expenses

Automatic consumption of goods


Using the "Automatic Inventory Consumption" function, you can set it up so that a specific service always consumes an associated product. The product's inventory is then automatically adjusted when the service is charged.

We show you how in the video:



Average cost price

The warehouse value of your products is calculated as the product of current inventory and the average cost price. This is a standardized method for determining your warehouse value in the event of potentially changing purchase prices.

The average cost price is the unit price of a product in your warehouse. This value only changes when the goods inventory increases. In this case, the current net purchase price is selected and adjusted proportionally.

Example:

  1. The opening inventory of a product is 10.00 and the net purchase price is 12.50. The average cost price is 12.50 and the warehouse value is accordingly 125.00.
  2. Two months later, the inventory is increased by 2 through goods receipt at an updated net purchase price of 15.00. The average cost price is now calculated as follows: 
      Previous warehouse value + number of new products * current net purchase price
  -------------------------------------------------------------------------------
                           new inventory 
= (125.00 + 2 * 15.00) / 12 
= 155 / 12 
= 12.92

    The new warehouse value is 155.00.

  3. By selling one product, the inventory is reduced to 14. The average cost price remains the same. The warehouse value is: 14 * 12.92 = 180.88

The purpose of the average cost price is to reflect a realistic - tax-relevant - value of the warehouse. Through further goods receipts, the average cost price continuously approaches the current net purchase price.

Product Group Statistics

In each product group, there is a sub-tab called "Revenue". This gives you an overview of the revenue of a product group, sorted by calendar years.

You can access this area via Settings > Prices and Competencies > Click on a product group

Inventory Consumption Report

For a very detailed listing of all inventory movements, the inventory consumption report is suitable. The prerequisite is that you are using the cash register system and have activated the inventory management system.

You can access the inventory consumption report via:

  • Select "Cash Register"
  • Select "Closings" on the left
  • Select weekly or monthly overview
  • Export at the top left
  • Select product report

A PDF will then open with all inventory movements for the selected period.