A brief analysis of store standard cost pricing method ( moving weighted average )
What is the pricing method
In the actual operation of the store, the store will purchase a certain commodity for many times. Due to the sales situation and price fluctuations, the quantity and cost of each purchase may be inconsistent. So how should the store accurately confirm the cost of goods out of the warehouse when selling goods ? In response to this situation, accounting regulations provide three types of outbound costsCalculation method: weighted average (including moving weighted average), first-in, first-out, individual pricing.
Therefore, the pricing method is essentially a rule for confirming the cost of commodity delivery.
What is the moving weighted average method:
Concept: The
moving weighted
average method
is
to calculate the weighted average unit cost by dividing the
cost
of each purchase plus the cost of the original inventory by the quantity of each purchase plus the amount of the original inventory to
calculate the
weighted average unit
cost
as the
calculation
A method for the
cost
basis of each issue of inventory .
In layman's terms, the outgoing cost of a commodity is the average cost of the stock keeping unit at the time the commodity is out of the warehouse .
The calculation formula is as follows
The calculation formula is as follows
1.
Average
cost
=
(actual cost of original
inventory
+ actual cost
of
this purchase )
/
(original inventory quantity
+
current purchase quantity)
2.
The
cost issued this time
=
the quantity of the inventory issued this time
*
the actual
cost
3. The
cost
of inventory at the end of this month
=
the number of inventory at the end of the month
* the
cost
of inventory units at the end of this month
. The moving average method can enable enterprise managers to keep abreast of the inventory balance, calculate the average unit cost and compare the cost of issued and balance inventory objective. However, since the average unit price needs to be calculated once every time the goods are received , the calculation workload is large.
. The moving average method can enable enterprise managers to keep abreast of the inventory balance, calculate the average unit cost and compare the cost of issued and balance inventory objective. However, since the average unit price needs to be calculated once every time the goods are received , the calculation workload is large.
How to calculate and view costs in the system :
When using the standard version
4.0
, users can open the inventory statistics report - click the "Details" button of each line of goods - enter the detailed report - click recalculation, you can
calculate
and see the
cost
.
How to quickly judge whether the
cost
calculation
is accurate or not, the most direct perception is: the cost
of goods shipped from the bank must be equal to the balance cost of the upstream . However, the cost of each shipment is not necessarily equal, which is also the biggest difference between it and the weighted average method (the cost of shipment of goods within a month must be equal).
<ignore_js_op style="word-wrap: break-word;">
sales return cost
The sales return order is a special document. The first thing we need to determine is that although the sales return will lead to an increase in inventory, it is still an out-of-stock document.
In theory, the return cost should be the out-of-stock cost at the time of sale . But generally speaking, it is neither difficult nor necessary to do so. Therefore, the store standard version 4.0 automatically takes the current inventory cost for the return cost . That is, wholesale returns will only affect the inventory quantity and will not affect the inventory unit price.
<ignore_js_op style="word-wrap: break-word;">
Negative inventory delivery cost :
There are three situations when negative inventory is shipped out:
1. The inventory has a balance quantity, but this time the stock out is greater than the balance quantity. At this time, the outbound cost is the current inventory commodity cost .
<ignore_js_op style="word-wrap: break-word;">
2. There is no inventory quantity in stock, that is, when the inventory quantity is 0, the purchase price of the product is taken by default. Generally, this situation mostly occurs when new products are purchased and sold before they have time to enter the warehousing order. Our way of handling this situation: the first priority is to take the purchase price by default. If not available, it defaults to 0.
3. The inventory quantity is negative, that is, negative inventory occurs continuously. At this time, the unit price can be calculated according to the weighted average unit price .
Negative inventory delivery itself is an abnormal business, and there is no unified accounting standard, and the cost at this time is not really meaningful to users.
Reminder: In order to obtain an accurate cost , please try to avoid negative inventory out of the warehouse. Or, after the negative inventory is shipped out, the system will recalculate the cost of the outgoing inventory according to the actual entry date of the commodity .