Costing

I am trying to understand how Sage Accounts costs component parts.

As it stands I believe that the "Last Cost Price (Standard)" is used as a standard cost, when a purchase order placed, and the invoice updated, the price on the purchase order would then update the last cost price, and the next order would use that.

Items in stock are costed based on an average cost taken from the last price paid.

The problem I have is that I buy parts in various quantities and from various sources, the cost varies. If the last cost price for an item is £1.00, then I place an order for a small quantity and pay £1.50, the last cost will be updated, the next order I place will then automatically be £1.50. I have no control over when to update my standard cost price.

If I don't update the purchase order, to prevent the updating of the last cost price, the average pricing will be wrong.

There also seems to be no basic reports that actually show last cost against average cost.

In systems I have used previously part records would show, last cost, average cost and standard cost, you then decide which to use.

Am I missing something?

Thanks

Parents
  • Hi. 

    Thanks for using Sage City.

    There are various reports you can run within products and services. Some of which will be based on last cost and some based on average cost price. 

    In regards to your query, are you just wanting the cost price for reporting purposes or wanting it to show elsewhere in the program? 

    The last cost price within the product record will always just update with the last cost price used on a purchase order for example. However, you can get the average price from products and services > reports > product valuation > run the product valuation (average cost price) report.

    Regards,

    Sean
    Sage UKI

Reply
  • Hi. 

    Thanks for using Sage City.

    There are various reports you can run within products and services. Some of which will be based on last cost and some based on average cost price. 

    In regards to your query, are you just wanting the cost price for reporting purposes or wanting it to show elsewhere in the program? 

    The last cost price within the product record will always just update with the last cost price used on a purchase order for example. However, you can get the average price from products and services > reports > product valuation > run the product valuation (average cost price) report.

    Regards,

    Sean
    Sage UKI

Children