© Tillypad, 2008-2015
When calculating cost prices, Tillypad XL accounts only for raw stocks. Other fixed and variable costs are not taken into account.
The cost price of a received stock item is based on the price specified in the stock-in document (stock-in record or invoice).
The cost prices of stock items that have been used are calculated according to the FIFO method. This method follows the principle that the usage of a certain stock item is compensated for by new arrivals in the order of their delivery to the store, from earliest to latest.
The cost price of a compound stock item (belonging to the With recipe class) is the sum of the cost prices of all ingredients needed for its preparation.
Example 1. How to calculate the cost price of a simple stock item
The simple stock item Carrots
was added to stock using the following documents:
a stock-in record dated 2014-01-02
(3.5 kg
was added to stock at the price of £2
),
a stock adjustment record dated 2014-08-02
(3 kg
was added to stock at the price of £1
),
a stocktaking record dated 2014-01-03
(7 kg
was added to stock at the price of £1.50).
Later, the production record dated 2014-04-03
documented the consumption of 5 kg
of carrots. To compensate for the consumed amount of carrots, the following stocks were used:
3.5 kg
at a price of £2 (refer to the stock-in record dated
2014-01-02 ; the stock was completely used
);
1.5 kg
at the price of £1 (refer to the stock adjustment record dated
2014-08-02; the stock was partially used
).
Cost price=(3.5*2+1.5*1)/5
As a result, the cost price of 1 kg
of Carrots
is £1.70.
Once the cost price of the used stock is determined, the program will calculate the cost price of the stock on hand.
Cost price of stock on hand = (1.5*1+7*1.5)/8.5
As a result, the cost price of 1 kg
of Carrots
is £1.41.
Example 2. How to calculate the cost price of a compound stock item
To prepare 1 kg
of the compound stock item Crouton
, the following stock items were used:
Recipe item |
Quantity (kg) |
Cost price (pounds.) |
Total (pounds) |
---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
Cost price |
|
Cost price of this compound stock item = 1.5*1.00+0.3*10.00+0.1*15
As a result, the cost price of 1 kg
of Croutons
is £6.
This situation might occur when there is not enough stock on hand to compensate for the stock used up (as specified in the documents). This deficit can be explained in several possible ways—for example, if stock items were not added or were added incorrectly to stock or if their corresponding documents were not run on the store. If this is the case, the cost price will be calculated on the basis of an incomplete data set. The resulting figure will be displayed with an exclamation point in parentheses.
Example 3. How to calculate cost price using incomplete data
The Groceries
store received 20 kg
of Sugar
at a price of £2
. However, only 10 kg
was added to the specification of a stock-in record dated 2014-01-03
.
Later, 20 kg
of Sugar
(actually available in the store) was moved from Groceries
to Kitchen
in a stock movement record dated 2014-03-15
.
Sugar cost price = 2*10/20 (20 referring to the stock on hand actually available in the store)
In view of the fact that the theoretical stock appeared to be less than the consumed amount of Sugar
, its cost price was calculated on the basis of incomplete data and made up at £1
per 1 kg
.
As a result, a negative amount of Sugar
is displayed in the
operational report.
In order to avoid a situation where consumption exceeds stock on hand, the user can activate stock monitoring.
If stock monitoring is active, a stock-out document will receive the status Execution error after being registered and processed.
The specification item that caused the error will be assigned the status Not enough on hand in store.
If after a document is processed on the store the volumes of some elements are edited in its specification, their cost price will be calculated conditionally until the next time the document is run on the store. In this case, the cost price per unit and the cost price of the specified quantity are separated in the data grid by a tilde (~).