• Using the example below, we have created a product called TESTING MAKE UP PRODUCT and entered 9.50 as the Cost Price (the net price we paid for the product ) and a Retail Price of 19.50

• The Cost Price Types in the Pricing tab will all default to €9.50

• The product can now be ordered through the Orders module. It will display the Latest Cost price which has been updated by the List Cost Price

• For this example we will order a quantity of 10 which will total the cost at €95.00 ( 10 x €9.50 )

• The Avg Purchasing Cost, Latest Cost Price and List Cost Price remain at €9.50.

• We will then check in the product and it will again display the latest cost Price.

• The Avg Purchasing Cost, Latest Cost Price and List Cost Price remain at €9.50.

• We will now sell the product in a local store. A quantity of 3 were sold and the a quantity of 2 were sold, both at a retail price of €19.50.

• Category Sales & Profitability Report will show the following:

• Qty: Quantity sold

• Value: sales value including VAT ( €9.50 x quantity of 5 )

• Value ( Ex VAT): sales value excluding VAT ( €9.50 x 5 - 23% )

• VAT: The VAT is set in the Pricing tab ( standard VAT of 23% )

• Cost: The Avg Purchasing Cost ( €9.50 x quantity of 5 )

• Profit: sales value excluding VAT - Avg Purchasing Cost ( €79.27 - €47.50 )

• Profit %: Profit / Value(Ex VAT) X 100

Note: By hovering over the report info icon, it will detail what the report contains

• We will now change the List Cost Price of this product as we are now purchasing this product at a reduced cost. The net cost of the product is now €8.50 so we will enter this into the List Cost Price field under the Pricing tab in Product Maintenance.

• The Avg Purchasing Cost and Latest Cost Price will remain at €9.50.

• The product can now be ordered through the Orders module. It will display the Latest Cost price which has been updated by the List Cost Price ( €8.50 ).

• For this example we will order a quantity of 10 which will total the cost at €85.00 ( 10 x €8.50 )

• Once the order is checked in the Latest Cost Price will be updated to the List Cost Price under the pricing tab in Product Maintenance (€8.50)

• Avg Purchasing Cost Price will now display €9.00 ( €8.50x10 + €9.50x10 / 2 )

• The newly updated Avg Purchasing Cost will now be used for sales when calculating profitability in the Category Sales & Profitability report.