Quickly understand your margins using the average cost feature
Get insight of your actual product costs (or cost of goods) using our average cost calculation feature. Cost control is a common area that can sneak up on business owners. It’s surprisingly easy for staff to overlook product cost changes, which can quickly erode your margins.
Finale allows you to stay on top of your product costs and be proactive taking the appropriate steps as opposed to learning at the end of the quarter that your costs significantly increased.
Leverage the average cost to determine the gross margin of each sales transaction. Understand which products are highly profitable and which products may need to have their pricing revisited. Finale makes it easy to gain this valuable insight to make adjustment on the pricing or cost side to manage your business and grow your profits.
When a new shipment is received, Finale will automatically calculate the new average cost for each product in the shipment, which will be used across your sales and inventory reports.
When average costing method is used in a periodic inventory system, the cost of goods sold and the cost of ending inventory is computed using weighted average unit cost.
Weighted average unit cost is computed using the following:
Weighted average unit cost =
Total cost of units available for sale / Number of units available for sale
If you are an existing customer, please email us @[email protected] to learn how to apply an average cost basis to your existing stock. We can help assist with the configuration changes.