Solved

Posted on 2011-04-26

i was asked to make a system for shop which use barcode to identify goods.

problem i have is

the owner buys goods lets say a soap, he buys same brand soap from one dealer a price of 10$ then he buys same brand from another dealer for 12$

but this brand has one barcode.

so when generating a report regarding profits etc.. report will not 100% accurate due to those prices.

what is the way to solve this?

Thanks

problem i have is

the owner buys goods lets say a soap, he buys same brand soap from one dealer a price of 10$ then he buys same brand from another dealer for 12$

but this brand has one barcode.

so when generating a report regarding profits etc.. report will not 100% accurate due to those prices.

what is the way to solve this?

Thanks

11 Comments

If you want it to be accurate then you will have to keep buying price each time a stock is added to the system / store and keep it in your database.

Avarage cost will not make it 100% accurate. Storing buying price + stock amount is the only way to make it 100% accurate. 1 month from now, if those prices will change to $15 to - $17, putting an input on items page or stocks page where admin could define;

How many soap / product company bought

What was the buying price

This way, you can also prepare more detailed statistics if it is needed. Such as if you also keep dates, company names etc,;

How much products were bought last month / week / year etc..

What was the cost of the items for the last month / week / year etc...

You could keep adding more and more details, if you keep such details for each item / products is bought, this will definitely help you to have more accurate & detailed statistics.

Thanks all for the information and for the quick replies.

in this case owner buy same product from several dealers for several prices and sell all at a fixed price.

so when sell there is no way to select the dealer and if i put option to select dealer it will not Suitable right?

so keep a average buying price is good?

you buy 1 bar of soap at $10 you then buy another at $12 giving you an average of $11 you sell 1 at $20 so you have a sales record of:

Qty Cost Price Sell Price

1 11 20

You then buy another bar of soap at $15 (remember you still have 1 in stock with an average of $11) so the new average price is $13 (((1 * 11) + (1 * 15))/2) and you then sell both of these at $20

Qty Cost Price Sell Price

1 13 20

1 13 20

So if you add it up $11 + $13 + $13 = $37 (which is the same as $10 + $12 + $15)

Total cost is $37 total sale price is $60 profit of $23

Like I said you must update the average cost price each time an item is purchased which is worked out using

[(current average cost * current stock qty) + (purchased cost * purchased qty)]

/ (curent stock qty + purchased qty)

Under the GAAP you are OK to report blended rates for the cost of commodity items. But as a businessman you should try to get the lowest overall cost, price and other factors considered.

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