What are the different types of product costs and selling prices?
By default, all locations have the same selling price of the same product. Each location has their own product costs and inventory values.
There is a setting for "Each location has their own sell prices", when this is enabled, then each location can maintain its selling prices.
Here are the different types of product costs and selling prices:
| Product cost type |
Description |
|
Last buy price
|
After a purchase order is received and costed, the last buy price is recorded for that specific product and location you're working in.
To manually edit this value, edit the product and directly update the last buy price, or via the data import function with the products or product attributes data types.
During the data entry of a new purchase order, the purchase price of a product is determined by:
- Checking if the product has a supplier price defined in the "Supplier price lists" area
- If not, then the purchase price will be set to the last buy price.
|
|
Unit cost price
|
This is the product's overall weighted average cost, calculated based on all costed purchase orders. This price is maintained automatically—after each receipted and costed purchase order, the average cost is recalculated and updated.
On the Sales orders or Quotes page, the gross margin percentage (GM%) is calculated using this cost.
To manually edit or change this value, use the Cost Adjustment* tool.
📝Note: for new products with no stock and no past transactions, updating the last buy price will also update the unit cost.
|
| Selling price type |
Description |
|
Selling price
|
The default selling price of the product.
You can set this price as GST / tax exclusive or inclusive via the company settings.
All price tiers and promotions that rely on percentage discounts will be calculated from this value.
|
|
Full / RRP
(recommended retail price)
|
In most cases, this is the same as the default selling price. It's primarily used for e-commerce website display purposes and is not involved in any system calculations.
|
* To access the cost adjustment tool:
- Go to Products. Select Inventory control, then Inventory adjustments.
- Click Go to cost adjustment at the bottom-left.
Note: when the selling price or latest buy price is manually edited, the system updates the value for all locations by default.
