Inventory & Cost of Goods Sold

To calculate the cost of sales in HirePOS, you first need to determine the stock-on-hand value at the start and end of the reporting period. This is done by adding the beginning inventory to the purchases made during the period and subtracting the ending inventory. The formula for this calculation is:

(Beginning Stock On Hand (Value) + Purchases (Value)) - Ending Stock On Hand (Value).

For accurate stock on hand values, it is recommended to conduct an End of Financial Year (EOFY) stocktake to ensure the correctness of your stock counts. Another stocktake should be performed in the subsequent EOFY. You can view the stock on hand report under Reports > Stock Control > Sales Stock On Hand (Value).

HirePOS primarily uses the "Weighted Average" or "Market Value" methods for costing items. In the Setup > Items section, you can find the Cost Price fields under the Purchase/Disposal tab when editing an item. These cost prices are used for the weighted average calculation.

While some businesses maintain master stock lists on spreadsheets to monitor costs and metrics over time, HirePOS allows for the export and import of user-defined cost values in bulk through the Options menu in the Setup > Items list.

HirePOS offers a customisation service for report templates, allowing you to tailor the Sales Stock On Hand (Value) and Cost/Profit reports to align with your business requirements. If you have a unique formula for calculating average inventory costs, we can adjust the reports accordingly.

To obtain purchase order values in HirePOS, you can access them through Reports > Purchase Orders. If you use third-party accounting software like Xero or MYOB, it is advisable to retrieve this information from your accounting system. HirePOS provides accounting exporter tools to export purchase orders along with the relevant Chart Of Account codes based on the order's receipt status.

Remember that purchase orders can be partially received and exported to supported accounting systems for accurate financial tracking.