Supplier Pricing / Average Cost Pricing

Learn how our system deals with the 2 cost prices

Supplier Price (Last Cost Price)

The supplier price, is a fixed cost price, that you can edit, and that will default to the last cost price, if any cost price has been entered. You can update this price via API, CSV, or via the CMS data entry screens. 

Supplier price can be used in reports to identify the cost to "replace the items" in stock, using the current/best known price to replenish.

Average Cost Price

Average cost price is recalculated very time you add stock. The average cost formula, is the cost to establish the current stock holding. It uses a FIFO basis, so assumes that any stock sold recently, was the oldest stock on the shelf. Or more specifically, the average cost, is the (SUM(movement_price)/SUM(movement_qty)) of recent product movements, where a price was known, to achieve the current stock holding, or the majority of the current stock holding. We only check the most recent 20 movements, as we assume all stock is replenished within the last 20 stock movements, and that historical movements are irrelevant for a fast calculation.