Compute sell price and margin based on product cost price (AVCO costing method)

The most common business case where you want to decide the sell price based on your cost of of the product purchase price.

Business case

The My Company is a distributor of Laptop, they purchase a laptop form the default supplier and sell to retail customers, there are sometime frequent price change, so My Company wants to setup the inventory costing and based on cost they can define the product they add 35% margin and sell to their customers.


  • Install Sales Management, Purchase Management & Accounting and Finance apps
  • Create a product Laptop
  • Set the Internal Category to All / Saleable
  • Set Costing Method to Average Cost (AVCO) on All / Saleable category
  • Define Default Supplier as a vendor with the cost price of Laptop.
  • Activate the Multiple Sales Prices per Product and Margins under the Sales / Configuration / Settings.
  • Change existing price list Public Pricelist and add new pricelist item, they increase the Laptop price by 35%.


If you have any question about this page, do not hesitate to drop your question in below comment box.