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Cost Price & Margin Tracking
Selling Price vs Cost Price
| Field | What It Is | Who Sets It |
|---|---|---|
| Selling price | What the customer pays at checkout | Admin |
| Cost price | What you paid per unit for current stock | Set automatically on PO receive; editable by Admin |
The POS always charges the selling price. Cost price is for your margin awareness; cashiers never see it.
Viewing Cost and Margin (Admin Only)
- Go to Products.
- Click the column-visibility icon (gear) on the table header.
- Enable Cost Price and/or Margin.
- Margin is colour-coded: green = positive, red = selling below cost.
What Is Weighted Average Cost (WAC)?
WAC blends old and new stock costs proportionally every time new stock arrives.
Example: 10 units at 80 LKR + 100 units at 90 LKR → WAC = (10×80 + 100×90) / 110 = 89.09 LKR
This is the standard cost method for retail. It smooths price fluctuations over time.
When You Receive a Purchase Order
When a new batch arrives at a different supplier cost, the system:
- Recalculates the WAC.
- If the WAC changed significantly, a Review Price Changes panel appears showing:
- Old WAC → New WAC and % change
- Your current selling price and the resulting margin change
- A suggested price that would preserve your existing margin
You can accept the suggestion, type your own price, or skip and keep the current selling price. Your selling price only changes if you explicitly apply an update.
Example: Product A: 10 units at 80 LKR cost, selling at 100 LKR (20% margin). New PO received: 100 units at 90 LKR.
- New WAC: (10×80 + 100×90) / 110 = 89.09 LKR
- Margin at 100 LKR: now 10.91% (down from 20%)
- Suggested price: 111.36 LKR (restores 20%)
FAQ
Q: A supplier raised their price. Do I have to update my selling price?
A: No, it is your choice. The system shows the margin impact and suggests a price. Your selling price only changes if you explicitly apply an update.
Q: I have old stock at a different cost and just received new stock. Which price does the customer pay?
A: The customer pays your current selling price. The POS cannot distinguish which physical batch a unit came from. Update the selling price as you see fit, or run a short clearance on old stock first.
Q: Can a Manager see cost prices?
A: No. Cost price and margin columns are Admin-only.
Q: My cost price was never set. What happens when I receive a PO?
A: The PO unit cost becomes the cost price directly. No WAC calculation on the first entry. From the second receive onward, WAC applies normally.
Q: Does WAC change when I record damage or wastage?
A: No. Negative adjustments (Damage, Wastage, Correction reducing stock) never update WAC. Only incoming stock (Receive adjustments and PO receives) changes the average.
Q: Does this affect the cashier or POS experience?
A: No. Cashiers see no cost or margin information. The checkout flow is completely unchanged.