Hello everyone,
I need help in Inventory price update. I have stock of many items of chemicals which prices are increased too much. Now if I update its purchase price in Inventory it does not take effect on Profit and Loss report because it calculates the Profit from average cost. can anybody help me how to resolve this issue ?
Manager always uses the average cost of inventory when calculating cost of sales for inventory and inventory valuation.
You can not change this.
If you want to use a different inventory valuation method, FIFO for example, you will have to do the calculations outside of Manager and use journal entries to make the appropriate adjustments to the accounts concerned
Thanks @Joe91 for your response,
No I don’t want FIFO method, the average method is best. For new year I want to Profit and Loss statement will be made based on updated price. is it possible ?
No, the average price is recalculated everytime you purchase new inventory, so it will increase automatically as you purchase more expensive replacment inventory