Calculate purchase price

Use best practice purchase prices

Entrepreneurs who work with purchase prices are on average much more successful than entrepreneurs who have to make decisions without this information and evaluation.

Because Hypersoft has an interest in the success of Hypersoft users, we have always provided the ability to set purchase prices for each item and even for recipes in the standard POS system at no extra charge. This gives you the following advantages, among others:

  • Many reports (especially in the Report Manager) give you information on your purchase prices and then round off your evaluations.

  • Integrated loss management only really makes sense with purchase prices, as you then have information on the use of goods for losses.

  • When negotiating with suppliers, you can use the purchase prices, last purchase price and other information (and EC of losses).

  • With the profile analysis, you can regularly check the success of your offer in order to optimise your map in a well-founded way.

  • With budget planning, you can then even have your theoretical EBIT calculated in real time.

Simple purchase price calculation for recipes...

There are two ways to consider the purchase prices of recipes:

  1. They store the purchase prices of the basic items and compile the recipes in detail. Changes to the prices of the basic items or to the compositions of the recipes automatically recalculate the purchase price.

  2. They calculate the purchase price without detailed recipes and possibly estimate it approximately. To enter the purchase price, enter a basic item with the term purchase price and one euro with one hundred "portions" as a variable. You add this item to each recipe and can then simply enter the EK as a multiplier.

And of course you can combine these methods and calculate only some things exactly and deposit the rest via a placeholder.

Note exceptions with the Report Manager...

In the chapter Things to note about the Report Manager, note the section Exceptions to the cost of sales in the Report Manager and Settings for EK in the Report Manager.

The Average Purchase Price - DEK

The average purchase price - /APPClosed DEK stands for the average purchase price. The DEK results from the goods receipt postings and the purchase price of the order variant applied. A historical average value is calculated by historically including all purchases with their quantity and price. If you change the DEK manually in the item master, this history is reset and the DEK is fixed directly. The current stock is used as the historically received quantity in this move. - For your convenience, it is also possible to reset the DEK of all items to the zero position.- is mostly used when the cost of goods is displayed or evaluated. The APP is an amount without value added tax. The calculation is based on the following principle:

The sum of all purchase prices divided by the sum of all purchased base units = APP of the base unit.

The totals are stored historically, cumulatively. Example:

Basis = 1 piece

100 pieces bought at €10. APP 10 €

10 pieces bought at 20 €. APP 10.909 € (rounded in the report 10.91 €)

Total 110 x 10,909 € = 1.199,99 € (rounded 1.200 €)

The value of the historical number per item increases from the first day of use, so that over the years the APP always shows the price of all purchases. Stock management and business valuations normally refer to this type of /APPClosed DEK stands for the average purchase price. The DEK results from the goods receipt postings and the purchase price of the order variant applied. A historical average value is calculated by historically including all purchases with their quantity and price. If you change the DEK manually in the item master, this history is reset and the DEK is fixed directly. The current stock is used as the historically received quantity in this move. - For your convenience, it is also possible to reset the DEK of all items to the zero position. calculation, knowing that the gross profit in the past was of course different if the APP has changed. The value of the last goods receipt (per item) is stored as LPP.

APP/ in the Report Manager...

The Report Manager can access the current APP from the item master with its reports, or use the APP that was valid at the time of posting. There is an alternative switch for this in the Report Manager. Please see Exceptions to the cost of sales in the Report Manager.

APP in Stock Management...

The APP in the CONTROLLER is a statistical mean value that is always correct in the long run. Even if reports change afterwards, it reflects the correct values in an entrepreneurial way.

Since there is no connection between the stock from day X and the purchase from day Y, error interpretations are possible. Example:

Purchase 01.04.2020 10 pieces at 10,- Euro

Purchase 10.04.2020 10 pieces at 20,- Euro

APP = 15

How much is a remaining stock of 15 pieces on 20.04. worth ? 15 * 10 Euro or 15 * 20 Euro ?

Hypersoft calculates here the APP average value 15 * 10 Euro.

Further documentation:

Exceptions to the cost of sales in the Report Manager

Query purchase price adjustment when posting for item option

Resetting the APP

If you change the APP manually in the item master, the historically stored values are discarded. Instead of the historical quantity, the current stock is now stored and the APP is retained. Since it is discarded with this, the weighting is removed from the existing value, so that the future goods receipt only calculates a APP together with the current stock.

This action also leads to the rejection of the historical number which is set against the new goods receipts, since the APP, if the item is already very old, is hardly changed by individual goods receipt postings in the value APP. The Historical Number is set to the number of the current inventory.

With the zeroing program you can reset all APPs with one command. However, the historical number is set to 0 regardless of the position.

Historical number APP LPP continuance
4563 10,- 12,- 10 (before provision)
10 12,- 12,- 10 (after provision in the item master)
0 12,- 12,- 10 (after reset with zero position)

The APP with queries

When editing the items in the item master, the APP is calculated within the queries. As it cannot be determined until the actual booking which APP will result from the selection of the queries, the program calculates an average value on the basis of the possible items. Later, when you post at the POS system, the cost of goods sold is determined exactly on the basis of the selection and used in the reports.

The APP for products

The APP for products is managed automatically. If a basic item that is involved in the product via a recipe is changed in the APP, the APP of the higher-level recipe is recalculated immediately. If this recipe is the basis of a product, the APP is also recalculated here. The same happens when recipes are changed. If the PP for products is to be synchronized, this recalculation also takes place across clients.

Further documentation: Purchase prices in the hypersoft system

Back to the parent page: Limitations and methods