Average unit cost
The average unit costs is the average cost of your current stock. Every time you receive a purchase order, your average unit cost is updated. For example, if you have 10 units of product A in stock, which has a cost price of $10 per unit, then your average unit cost is initially $10. If you then order another 10 units of product A, this time with a cost price of $5 per unit, then your average unit cost is now $7.50.
Average unit costs are unique to Stocky and don't appear in Shopify.
On this page
Calculating average unit costs
Stocky uses the following formula to calculate the average unit cost on a purchase order:
((Current Average Cost x Current Stock Quantity) + (Receiving Stock Cost x Receiving Stock Quantity)) / (Current Stock Quantity + Receiving Stock Quantity)
For example, if you have 30 units of a product that costs $10 per unit, and are ordering another 15 units at only $8 per unit, the formula would be ((10 x 30) + (8 x 15)) / (30 + 15) which totals an average unit cost of $9.33.
There are two cases when this formula isn't used:
- When a purchase order is created for a variant that currently has a negative stock quantity. In this case, the average unit cost will be updated to the Receiving Stock Cost value.
- When a purchase order is created that has a negative Receiving Stock Quantity which is greater than the Current Stock Quantity, resulting in an overall negative stock level. In this case, the average cost doesn't change.
Enable or disable automatic unit cost syncing
To have the cost per item in your Shopify admin update automatically with the value in Stocky, enable automatic updates for average unit costs. Enabling automatic average unit cost syncing overwrites the existing cost per item value in your Shopify admin and can't be undone.
Steps:
From your Shopify admin, click Settings > Apps and sales channels.
From the Apps and sales channels page, click Stocky.
Click Open app.
In Stocky, click Preferences.
Click COGS.
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In the Automatic Cost Price Syncing section, take one of the following actions:
- To turn on automatic syncing, click Enable.
- To turn off automatic syncing, click Disable.
Set your initial average unit costs
There are a few different ways to set your initial average unit cost:
Import a CSV file into Stocky
From your Shopify admin, click Settings > Apps and sales channels.
From the Apps and sales channels page, click Stocky.
Click Open app.
In Stocky, click Preferences.
Click COGS.
Click Import Initial Average Unit Costs.
Choose a CSV file to import and click Next.
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An import preview of the first rows of the CSV displays. Assign the following columns:
- For Which column is the identifier?, select Variant Barcode or Variant SKU.
- For What type of identifier is this column?, select Barcode or SKU based on your previous selection.
- For Which column is the Average Cost?, select Cost per item.
Click Next.
From the SKU/Variant report
From your Shopify admin, click Settings > Apps and sales channels.
From the Apps and sales channels page, click Stocky.
Click Open app.
In Stocky, click Reports
Select the SKU/Variants report.
Select the Columns, and then select Average Cost.
Click Update.
A report showing each of your product variants with the associated average cost is now displayed. Enter the average cost into the Average cost column.
Optional: Click Save Report to save this SKU/Variant Report.
Apply the average unit costs to historical sales orders
If you want to cost of goods sold (COGS) reports for existing sales orders, then you need to apply your current average cost to those specific orders. This method might not be completely accurate, but it provides you with an approximate cost associated with each product.
Steps:
From your Shopify admin, click Settings > Apps and sales channels.
From the Apps and sales channels page, click Stocky.
Click Open app.
In Stocky, click Preferences
Click COGS, and then select Backdate Average Unit Costs.
Enable the average unit cost on in-progress purchase orders
From your Shopify admin, click Settings > Apps and sales channels.
From the Apps and sales channels page, click Stocky.
Click Open app.
In Stocky, click Preferences > Purchase orders.
Click Settings for draft PO.
Select Average Unit Cost.
Click Update.
Click Save changes.