What is average cost?


Latest update: - Olivia Petersen

 Setup

  •  Vend for Mac or PC

Answer

Every product in Vend 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 Vend.

Average cost is:

  • The averages of all historical supply prices you have purchased your products for over a period of time.
  • Affected only through the use of a stock order in Vend. Directly editing a products' 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 Vend's reporting functions to calculate COGS, Gross Profit etc.
  • It is 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 Vend

 

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