Retail Express uses two prices for reporting and maintaining products:
- Supplier Buy
- Weighted Average Buy Price Ex (commonly referred to as Buy Ex)
The Supplier Buy price is used for Purchase Orders, whereas the Weighted Average Buy Price is the price used to calculate the Cost of Goods Sold. Each of these prices are described in more detail below.
Supplier Buy Price
The Supplier Buy is the price paid to the Supplier for their products. The price is only used on the PO's sent to that supplier, and is entered in that suppliers native currency (the value will be displayed on the Purchase Order). If it's a domestic Purchase Order it will be in your local currency, or if an international order, your foreign overseas supplier buy price excluding tax.
This field is only modified if you manually change it. If you import stock, then upon receiving in a Purchase Order, the price can be converted to your local domestic buy price - refer to the Weighted Average Buy Price below.
Weighted Average Buy Price, Ex (Buy Ex)
The Weighted Average Buy Price is the cost price of the product paid by you in your currency, and used to calculate the Cost of Goods Sold (COGS) and Gross Profit (GP).
In order to accurately calculate costs, Retail Express averages out the cost of goods between the cost of goods being received and the cost of goods in stock already. Each time a product is received in a Purchase Order, the Weight Average Buy Price is updated. The result is the current weight average buy price (in local/domestic currency).
The Buy Ex field on the Stock Receipt window
To manually update the field, you can:
- Edit the product in Retail Express
- Update products in bulk via the Mass Upload
For detailed information refer to Calculating Cost of Goods Sold (COGS).