有时候，你可能听到别人抱怨他们不明白为何他们所销售的东西赚幅是100%,并没有计算来价成本，又或就算卖价高过买价也会亏钱。这是因为成本计算法(Costing Method)。任何销售物品的商家，必须了解如何通过不同的成本计算法去算出单件货品的成本与价值，以使到你能选择运用哪一种适合你的成本计算法并能准确的设定售价以达到你要的销售净利率(Profit Margin)。一起学习为成本计算法吧!

Sometimes, you may hear people complaining they do not understand why the profit margin of their product is 100% and not factor in the stock cost, or why they still make loss even the selling price seems higher that the purchase cost. This is because incorrect Stock Cost and Stock Value. For any business that are selling product, you need to understand how is the cost and value of each item is generated by using different costing method, so that you can decide on which method that best suit you. By then, you are able to set the item price by using accurate item cost, which ultimately achieve the profit margin that you want. Let’s learn Costing method!

In SQL Accounting System, we support 3 type of Costing Method, First In First Out(FIFO), Fixed Costing and Weighted Average. The setting is done in Stock->Maintain Stock Group.

In previous tutorial, I have discussed that Stock Group normally got 2 purposes. First, it is where you can set the account code such as Sales Account and Purchase Account for different group of stock. Secondly, can group different item by different category but limited to one category. If you wish to group an item to multiple categories, then you need to get the Stock Category Module.

Let’s learn Stock Costing Method, starting with Fixed Costing. We go to Stock->Maintain Stock Group, and create a Group call Fixed Costing and select the Costing Method as Fixed Costing.

Then, go to Stock->Maintain Stock Item, create an item call “Item-Fixed Costing”, set the Reference Price as RM20, most important is to select the Item Group as “Fixed Costing”. Then we create two Purchase Invoice with “Item-Fixed Costing”, first one using Purchase Reference Cost RM20 with 10 unit, and second as RM50 with 10 units as well.

When we check at Stock->Stock Card, we can see that the “Item-Fixed Costing”, even we purchase at RM50 in second Purchase Invoice, the Cost is set to follow Reference Cost RM20 that we set in Maintain Stock Item, this is what we call Fixed Costing, which will ignore the purchase price and stick to a fixed cost that you set.

We go to create a Sales Invoice for “Item-Fixed Costing” selling at RM100 with15 units. When we check the Stock Card again, the balance quantity of 5 will still have unit cost of RM20, and make the balance Stock Value as RM100(RM20x5 Units). Because of the cost, it not only affects the Stock Value, but also the profit margin.

We go to Sales->Print Profit & Loss By Document, we can see that the Cost of the 15 unit is RM300(RM20x15 Units). Making the Profit as RM1200. This is how Fixed Costing Costing Method work.

Next, we learn FIFO. Same thing, go to create a Stock Group “FIFO” with Costing Method as FIFO. Go to create an Item call “Item-FIFO”, Reference Cost RM10 and set Stock Group as “FIFO” as well.

Create a Purchase Invoice for “Item-FIFO”, 10 Unit in Quantity and use Reference Cost RM10.

Create second Purchase Invoice for “Item-FIFO”, 10 Unit in Quantity and change price to RM20.

When check the Stock Card, you can see that the costing will follow the purchase price according to unit quantity purchased which sum up total 20 units of “Item-FIFO” with Total Stock Value as RM300 [(RM10X10unit)+(RM20x10unit)].

Create an Invoice for “Item-FIFO”, with 15 units and price at RM100.

When check Print Profit & Loss by Document, we can see that the cost is RM200 [ (RM10XFirst 10 Quantity)+(RM20x 5 in second purchase)]. This is how FIFO Costing Method work.

Next, we learn Weighted Average. Same thing, go to create a Stock Group “Weighted Average” with Costing Method as Weighted Average. Go to create an Item call “Item- Weighted Average”, Reference Cost RM30 and set Stock Group as “Weighted Average” as well.

Create a Purchase Invoice for “Item-Weighted Average”, 10 Unit in Quantity and use Reference Cost RM30.

Create second Purchase Invoice for “Item-Weighted Average”, 10 Unit in Quantity and change price to RM70.

When we check Stock Card, we can see that the Cost during first purchase is using the Reference Cost RM30, but when second purchase when cost is RM70, the Unit Cost change to RM20 for all quantity.

This is because, whenever there is a new purchase, the Unit Cost will re-calculate. It will change the Unit Cost and Stock Value as well. Refer below for the detail’s calculation:

Create an Invoice for “Item-Weighted Average”, 15 Unit in Quantity and price at RM100.

When check Print Profit & Loss By Document, the cost of is RM750 (RM50 x 15 Unit). This is how Weight Average Costing Method work.

Please refer to below for the tutorial video: