What is average cost?

 Setup

  •  Retail POS for Mac or PC

Answer

Every product in Retail POS has an average cost that you cannot directly edit or change through a CSV import. The average cost can be a different value to a product's supply price and is a different entity in Retail POS.

Average cost is:

  • A weighted average of the supply prices that the current units of stock on hand were received at
  • Affected only through the use of a stock order in Retail POS. Directly editing a product's supply price on the edit product page will not make a change to the average cost
  • How your cost of goods, and therefore the cost of goods sold ('COGS') is calculated, not by a products' supply price
  • The Stock Value figure used for Retail POS's reporting functions to calculate COGS, Gross Profit etc
  • Updated by the system only when a change in inventory levels occurs (i.e. Sales/Stock orders/Purchase Orders)

Additional Information

Accurately Calculating Cost of Goods ("COGS") Sold in Retail POS

 

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