The Inventory Cost Report is based on stocked physical inventory items and the Actual Cost of those items. “Cost” may be different than wholesale cost, as the “Actual Cost” is defined as the amount paid by the office for a specific physical inventory item.
To run a report, access Reports > Inventory > Cost. The cost report can be run based on product category and can be filtered using "Advanced Search."
Using the “Actual Cost” field in the Details tab eliminates the need to set the “Unit Cost” every time a physical inventory item is received, however, it can be updated for a specific physical inventory item when using "Receive Stock."
“Actual Cost” is not a required data field, however, if reporting is desired based on the actual cost to the practice for the physical inventory items, it is necessary to set an “actual cost.” If “Actual Cost” is not tracked by the office, reporting on the wholesale cost is available in the standard inventory reports.
When stock quantity on a specific physical inventory item is greater than one, the following rule is applied when that quantity is decremented: The first item added is the first item removed. For example, a physical inventory item for a frame is added on January 3rd, and the default cost for that frame product is set at $40.00. On January 15th, “Receive Stock” is used to increase the stock quantity on that physical inventory item to two and the “unit cost” is edited in “Receive Stock” to $30.00. When a frame is sold, the system removes the frame that was added on January 3rd first. Therefore, the cost report on the remaining frame displays the cost based on the January 15th frame at $30.00.
The “Date” field is available for the Inventory Cost report, allowing the user to run the report based on the stocked quantity and cost at the end of the day on the date set in the date field.
In addition to the standard columns displayed in all inventory report grids, the Cost report displays:
- Retail: The retail price associated to the physical inventory item being reported on.
- Wholesale: The wholesale price set in the Details tab for the product associated to the physical inventory item being reported on.
- Stock Quantity: The stock quantity as of the date specified in the “Date” field for the Cost report being run.
- Stock Retail: The total retail amount calculated by multiplying Retail and stock quantity for the physical inventory item being reported on
- Stock Wholesale: The total wholesale calculated by multiplying Wholesale and stock quantity for the physical inventory item being reported on.
- Stock Cost: The total cost based on the stock quantity and the cost associated to each physical inventory item associated to that stock quantity. For example, if there is a total of two for stock quantity, and one physical inventory item was added with the “cost” set to $30.00, the second physical inventory item was added with the “cost” set to $40.00, the Stock Cost will display as $70.00.