Cost of Sales and margin

[dboukhira]

Hello,

We have Accpac Advantage Series 5.2 with MISys 5.0 and we have a question related to the margin and specifically to the Cost of Sales.

We noticed that sometimes the Cost of Sales is greater than the Sales Amount so we get a negative Margin Percent.

How the Cost of Sales is calculated for a product? Can you give us a detailed example, please?

Thanks in advance and best regards.

 

[jayconverse]

It depends on how you set up your I/C account set codes. Costing can be LIFO, FIFO, Average, Standard, or user-specified. Check your I/C item master.

Jay Converse
IT Director
Systemlink, Inc.

 

[dboukhira]

Average.

 

[jayconverse]

Average cost is calculated as total value/total inventory at the time of day-end processing. However, if you allow negative quantities, then total cost can get messed up when inventory falls below 0.

Of course, it could also simply be that your prices are too low!

Jay Converse
IT Director
Systemlink, Inc.