Cost Pricing

The cost price on each of your product's is calculated in one of two ways depending on whether you configured the product to be non-inventory or inventory tracked.

The cost price should exclude GST even if your organisation is not registered for GST.

Non-inventory product

Non-inventory type products always use the cost price set on the product. It is up to you to manually change the cost price.

Inventory tracked product

Tradevine uses FIFO (first in first out) to auto-calculate the cost price on each inventory tracked product. The cost price will be re-calculated each time any of the following actions occurs:

  • receive in a purchase order
  • process a shipment
  • make an inventory adjustment on the product
  • process a stocktake
  • process a sales return
  • import a product with a new cost price or a change in quantity

Each time the stock on a product increases, an inventory transaction record is created that sets up a batch remaining quantity with the cost price you created. Each time the stock decreases the batch remaining quantity of the oldest batch of stock is decremented. The cost price is then recalculated by using all the inventory transactions that have a batch remaining quantity of one or more.

Multiple warehouses

If you have multiple warehouses, then only the stock in the Owned and 3PL type warehouses will be used to calculate the current cost price. The cost of the stock in your Supplier type warehouses will be ignored.