{"_id":"587ea98558666c2700965dd8","user":"55b17309b3a7e037008ac294","githubsync":"","parentDoc":null,"project":"55b17318ae3b7621003e659d","__v":0,"category":{"_id":"55b17319ae3b7621003e65a1","version":"55b17318ae3b7621003e65a0","pages":["55b1731aae3b7621003e65a3","55b1e600ae3b7621003e6674","55b1ed35ae3b7621003e669d","55b1f894fa4acb1700910e90","55b1f8d1bd0ec92d002227d6","55b72baa2764c20d008d7cc6","55c598635c5d9f0d00496a26","5643d31cc92c470d002decf1","564bbb340cbcc91700b81719","5668a03006039e0d00c4ed5f","5668a36132fe4e0d0084f52b","56b83ffeb1e03e0d00105627","56d7d14d7a04df0b00ddefb5"],"project":"55b17318ae3b7621003e659d","__v":13,"sync":{"url":"","isSync":false},"reference":false,"createdAt":"2015-07-23T23:04:57.528Z","from_sync":false,"order":1,"slug":"documentation","title":"Documentation"},"version":{"_id":"55b17318ae3b7621003e65a0","project":"55b17318ae3b7621003e659d","__v":6,"createdAt":"2015-07-23T23:04:56.991Z","releaseDate":"2015-07-23T23:04:56.991Z","categories":["55b17319ae3b7621003e65a1","55b1f85bbd0ec92d002227d3","5643ca63c6e9600d006bd71d","57985b0417ced017003c4c25","57e9c03b0691d50e007bee6d","58842626cdbc3c0f00175638"],"is_deprecated":false,"is_hidden":false,"is_beta":false,"is_stable":true,"codename":"","version_clean":"1.0.0","version":"1.0"},"updates":[],"next":{"pages":[],"description":""},"createdAt":"2017-01-17T23:32:21.831Z","link_external":false,"link_url":"","sync_unique":"","hidden":false,"api":{"settings":"","results":{"codes":[]},"auth":"required","params":[],"url":""},"isReference":false,"order":1,"body":"[block:api-header]\n{\n  \"title\": \"What are average unit costs?\"\n}\n[/block]\nThe average unit costs is the average cost of your current stock. Each time you receive a purchase order your average unit cost is updated.\n\nFor a very simple example if you have 10 x Product A in stock which has a cost price of $10 your average unit cost will initially be $10.\n\nBut if you then order another 10 x Product A this time with a cost price of $5 your average unit cost will now be $7.50. This is a very basic example and assumes that you still have the initial 10 products in stock.\n\nTo see how this works in a more complex situation use the following equation:\n[block:image]\n{\n  \"images\": [\n    {\n      \"image\": [\n        \"https://files.readme.io/d87d2d4-average_cost_calc.png\",\n        \"average_cost_calc.png\",\n        856,\n        149,\n        \"#c6c6c6\"\n      ],\n      \"sizing\": \"80\"\n    }\n  ]\n}\n[/block]\n\n[block:api-header]\n{\n  \"title\": \"How to set initial average unit costs\"\n}\n[/block]\nBecause average unit costs are only set upon receiving a PO you will find that any products ordered before using this feature don't have an average cost price.\n\nThere are a few different ways to set your initial average unit cost:\n\n##  Importing a CSV file\n\nYou can simply import a CSV file containing your initial average unit costs by going to **Preferences** then **COGS** then **Import initial average unit cost**.\n\n## From the SKU/Variant report\n\nGo to **Reports** then **SKU/Variant Report** then **Columns** then **Average Cost** then **Update**. You'll now see a report showing each of your product variants with the associated average cost. You can simply click within the average cost column to enter your average cost.\n\nFor an easier way to get to this report go to **Preferences** then **COGS** then click the following link:\n[block:image]\n{\n  \"images\": [\n    {\n      \"image\": [\n        \"https://files.readme.io/6248ac2-COGS_Preferences___Stocky.png\",\n        \"COGS_Preferences___Stocky.png\",\n        1302,\n        826,\n        \"#2e5d52\"\n      ]\n    }\n  ]\n}\n[/block]\n\n[block:api-header]\n{\n  \"title\": \"How to apply average unit costs to historical sales orders\"\n}\n[/block]\nIf you'd like to see COGS reports for existing sales orders you'll need to apply your current average cost to these orders. This may not be perfectly accurate but it's better than having no cost associated.\n\nGo to **Preferences** then **COGS** then **Backdate Average Unit Costs**.\n[block:api-header]\n{\n  \"title\": \"Showing the average unit cost on your POs\"\n}\n[/block]\nYou can enable the average cost column on each of the PO views by going to **Preferences** then **Purchase Orders** then **Settings for draft/confirmed PO** then **Average Cost**.","excerpt":"","slug":"average-unit-costs","type":"basic","title":"Average Unit Costs"}

Average Unit Costs


[block:api-header] { "title": "What are average unit costs?" } [/block] The average unit costs is the average cost of your current stock. Each time you receive a purchase order your average unit cost is updated. For a very simple example if you have 10 x Product A in stock which has a cost price of $10 your average unit cost will initially be $10. But if you then order another 10 x Product A this time with a cost price of $5 your average unit cost will now be $7.50. This is a very basic example and assumes that you still have the initial 10 products in stock. To see how this works in a more complex situation use the following equation: [block:image] { "images": [ { "image": [ "https://files.readme.io/d87d2d4-average_cost_calc.png", "average_cost_calc.png", 856, 149, "#c6c6c6" ], "sizing": "80" } ] } [/block] [block:api-header] { "title": "How to set initial average unit costs" } [/block] Because average unit costs are only set upon receiving a PO you will find that any products ordered before using this feature don't have an average cost price. There are a few different ways to set your initial average unit cost: ## Importing a CSV file You can simply import a CSV file containing your initial average unit costs by going to **Preferences** then **COGS** then **Import initial average unit cost**. ## From the SKU/Variant report Go to **Reports** then **SKU/Variant Report** then **Columns** then **Average Cost** then **Update**. You'll now see a report showing each of your product variants with the associated average cost. You can simply click within the average cost column to enter your average cost. For an easier way to get to this report go to **Preferences** then **COGS** then click the following link: [block:image] { "images": [ { "image": [ "https://files.readme.io/6248ac2-COGS_Preferences___Stocky.png", "COGS_Preferences___Stocky.png", 1302, 826, "#2e5d52" ] } ] } [/block] [block:api-header] { "title": "How to apply average unit costs to historical sales orders" } [/block] If you'd like to see COGS reports for existing sales orders you'll need to apply your current average cost to these orders. This may not be perfectly accurate but it's better than having no cost associated. Go to **Preferences** then **COGS** then **Backdate Average Unit Costs**. [block:api-header] { "title": "Showing the average unit cost on your POs" } [/block] You can enable the average cost column on each of the PO views by going to **Preferences** then **Purchase Orders** then **Settings for draft/confirmed PO** then **Average Cost**.