Compute the cost of product (standard price)¶
The My Company is a distributor of Laptop, they purchase a laptop form the default supplier and sell to retail customers, they do not maintain the stock, they always purchase on demand so Standard pricing is perfect costing method for them. Some times they benefit or loss if they have stock and product price change as they directly change the product cost price which impact on their inventory value.
- Install Sales Management, Purchase Management & Accounting and Finance apps
- Create a product Laptop
- Set the Internal Category to All / Saleable.
- Default costing method on the category is Standard pricing.
- Define Default Supplier as a vendor with the cost price of Laptop.
- Purchse 2 unit of Laptop at different rate then the Standard price, inventory value will be computed based on the product Standard price field.
This method is less useful in the real-life.