I have an inventory item that I can purchase from two different suppliers for different cost price.
From Supplier1 the cost price is £1 from supplier2 it is £3. If supplier1 has no stock I have to order from supplier2.
Is manager using average cost price for inventory items? I mean if I create a purchase order for 10pcs for £10 and then another 10 for £30 the cost price will be calculated automatically or shall I create a different inventory item for different suppliers?
Use the same inventory item. Manager will automatically calculate the cost based on how much the item has been purchased for. You can purchase 10 pieces for 10 USD and another 10 pieces for 30 USD and when selling 1 piece, the cost of goods sold will be 2 USD per piece.