Understanding The Stock Costs

Stock costing is quite a complex issue. This document serves to explain the different costing options available in eAccounts.

  • Purchase Cost: This is the raw cost charged by the supplier. Generally, it is the last cost from the supplier. It may or may not be in the local currency.

  • Bulk Cost: This is the purchase cost of an item if purchased in bulk for a given bulk qty were there is a bulk price. It may be left blank.

  • Landed Cost: This is a function of purchase discount %, currency, exchange rate, duty % and freight %. It is always in local currency.

  • Average Cost: Optionally updated on receiving stock and is updated using the moving average formula.

  • Valuation Cost: Cost used to value stock on hand. This can either be last landed cost or moving average. Please contact your eAccounts representative to have this set-up for you.

  • Pricing Cost: Used to calculate selling prices.

  • Invoice Cost: This is the cost used to calculate the margin.

    Note:     The above 3 costs, i.e. average, valuation and pricing costs are not editable.

    Meaning of codes (in Brackets)
    Average Price

    		 (X)
    (B)     		Average Price directly editible no GL Update
    Average Price limited access and updates GL if changed.
    Valuation Cost

    		 (A)
    (L)    		 Valuation Is Based On Average Cost
    Valuation Is Based On Last Cost
    Pricing Cost




    		 (A)
    (L)
    (1)
    (2)
    (M)    		 Valuation Is Based On Average Cost (not editible)
    Valuation Is Based On Last Cost (not editible)
    Valuation Is Based On Last Cost On Stock Receipt  (editible)
    Valuation Is Based On Average Cost On Stock Receipt  (editible)
    Manually Edited
    Invoice Cost

    		 (P)
    (A)    		 Pricing Cost (not editible)
    Average Cost (not editble)