Retailer has the ability to display and report on average cost prices. The average cost price is calculated based on the current quantity-on-hand and the cost price of the latest arrivals.
For example:
| Latest arrivals | Current QOH | Average Cost Price | ||
| 4 in January @ $490.00 each | 10 | (2 x $500) + (5 x $510) + (3 x $520) | = $5110 / 10 | = $511.00 |
| 4 in February @ $500.00 each | ||||
| 5 in April @ $510.00 each | ||||
| 3 in June @ $520.00 each | ||||
After enabling average cost prices, Retailer will use the average cost price in place of the most recent cost price is all reports and GP% calculations. Both cost prices will be displayed in the stock screen.
Cost prices are recorded at time of sale. Activating average cost prices will not recalculate historic sales data. Sales reports for dates from before you enable average cost prices will NOT be affected.
Enabling Average Cost Prices
Once you enable average cost prices, the average cost price will be calculated based on the current quantity on hand.
Before enabling average cost prices, make sure you have performed a backup. Click HERE for instructions on performing a backup of your data.
- On the top menu bar of Retailer, click on Setup -> System.
- Click on the Stock tab.
- In Cost Price Method, select Use Average Cost Prices from the drop-down box.
- Click Save.
- The Calculate Average Cost Prices screen will appear.
Tick the tick-box and click Start. - Click Yes to the next 2 warning messages.
- Click close once Retailer finishes calculating the average cost prices.