RIO Inventory

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Cost Tracking

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As of version 3.2, Products can now be marked as Cost Tracked (Tracking Cost for each Product). The Cost Tracking feature is used to determine the average purchase price of a product. For example, If you buy a Car Battery from Supplier A for $300 and Supplier B sells you one for $189, RIO Inventory will provide the overall average purchase price. This will only be tracked if products are marked as Cost Tracked.  

 

At the Product level, there are two fields involved:

  • Cost Tracking – A checkbox to indicate that this Product is to be cost tracked.
  • Default Unit Cost – The default cost of the product and this value will be a default value in Inventory Adjustments will use this as the default value, this can be modified for each Inventory Adjustment.

 

Inventory Adjustments and Cost Tracking

 

When performing Inventory Adjustments for Cost Tracked Products, an extra field called Unit Cost will be displayed.

 

This field will be pre-populated with the Default Unit Cost from the Product.

 

This field is mandatory when performing an Inventory Adjustment for all Cost Tracked Products.

 

The Average Unit Cost will be tracked on the Warehouse Inventory record.

 

It will automatically update after each Inventory Adjustment.

 

If you choose to Overwrite the Existing QoH, the Average Unit Cost will also be overwritten.

 

After Inventory is adjusted, the Average Unit Cost will be tracked on the Warehouse Inventory Record here.

 

It will automatically update after each Inventory Adjustment. If you choose to Overwrite the Existing QoH, the Average Unit Cost will also be overwritten. Average Unit Cost is the average Unit Cost per Warehouse Inventory. For example,

 

a. 10 Triangles are added to Sunshine Coast Warehouse with Unit Cost of $300. Average Unit Cost = $300

 

b. Another 10 Triangles are added to Sunshine Coast Warehouse with Unit Cost of $350. Average Unit Cost = $325.

 

Calculation: ((10*$350 + 10*$300)/20) = $325

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Example of How Cost Tracking Works

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Here is a guide to demonstrating how to create Cost Tracking Reports. 
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