StoreHub uses a product's 'Cost' to value your stock in the 'Stock Value' report and to work out 'Gross Profit' in your sales reports. This article explains how 'Cost' differs from 'Supplier Price', how 'Cost' changes when you receive stock, how to change it yourself, and what happens when you buy one product from several suppliers.

'Supplier Price' is what a supplier charges you. 'Cost' is the average value of one unit of the stock you hold, or of one base unit if you track the product in multiple units.

Changing 'Supplier Price' on the product does not change 'Cost', so the two rarely match.

Enter 'Cost' as the cost of one unit, not the total for all the units you hold.

StoreHub saves the figure you type in 'Cost' exactly as you type it. It does not add tax to it or take tax off it.

When you receive stock on a purchase order, StoreHub averages the 'Cost' of the stock you already hold with the cost of the new stock, weighted by the number of units. The stock you already hold is counted across all your stores, not just the store that receives the delivery.

For example, you buy 20 units at 10.00 each, then 10 more at 13.00 each. Your 'Cost' becomes 11.00, the average across both batches, not 10.00 or 13.00.

If your stock across all stores is 0 or below when the delivery is received, 'Cost' becomes the cost of the new stock.

For the receiving steps, see How to Manage Purchase Orders.

The figure you type replaces the old 'Cost' straight away. StoreHub does not average it with the cost of the stock you already hold.

Changing 'Quantity' on the product to add a delivery does not change 'Cost'.

To have StoreHub average the new price with the cost of your older stock, receive the delivery on a purchase order instead. If you receive stock with a 'Goods Received Note', that also needs a purchase order, so there is no way to receive stock at a new price without one. A 'Cost' you type applies in every store, and the next purchase order you receive averages from that figure. If 'Fix Supplier Price' is on, purchase orders in the ticked stores use the product's 'Supplier Price', a single value that shows on the product page once any store is ticked; edit it there, and purchase orders you create after that use the new price and update 'Cost' when you receive them.

Each sale records 'Cost' times the quantity sold when the sale reaches BackOffice. If you change 'Cost' and a sale is later voided or changed, that sale takes the new cost. When a sale is voided on the POS or in BackOffice, a pre-order is settled, or the POS uploads a changed version of the sale, BackOffice deletes it and saves it again with the product's current 'Cost' (for a composite product, its own 'Cost'). In your sales reports, 'Gross Profit' is 'Net Sales' minus that cost, and 'Net Sales' leaves out tax.

In the 'Stock Value' report, each product's stock is valued at its 'Cost' times the quantity on hand. See Stock Value Report: What Your Current Stock Is Worth.

You can select more than one supplier in 'Supplier' on a product, and add the product to a purchase order from any of them.

The product still keeps one 'Supplier Price' and one 'Cost'. When you sell a serial number, its profit uses that one average 'Cost', not what you paid for that unit.

Enter the serial number when you receive the purchase order, not in 'Manage Serial Numbers' on the product. A serial number you add on the product is not linked to a supplier.

When the unit is sold, you can trace it back:

A 'Serialized' product can also use 'Variable' pricing, so your staff enter the price on the POS. This works for POS sales only, because serial numbers and the minimum and maximum price do not apply online.

To set these up, see How to Set Up Variable Pricing and Price Books and How to Set Up Barcodes and Serial Numbers.

1. Does changing 'Supplier Price' change my 'Cost'?

2. Is 'Cost' for one unit or for all my stock?

3. Can one product have more than one supplier?

Contact StoreHub Support via live chat in your StoreHub app or email [email protected].