When the unit cost of an item has incorrect margins, profit and average cost can be drastically affected. If the an item's unit cost needs to be edited, you can do so during the sale or by adjusting the item's unit cost in your inventory. In the event that an item's unit cost was incorrectly entered prior to a sale, you can also adjust the average cost of the sale item retroactively.
To keep yourself aware of any margin, profit and cost discrepancies or changes, it is recommend that an Asset report be exported on a monthly basis. We also recommend leveraging the Sales Lines section of some reports and the Inventory Entry section of your items to familiarize yourself on how to:
- detect abnormal margins.
- update an inventory lot's unit cost.
- adjust a sale items average cost retroactively.
Using a report such as Margins Per Line, any unusual margins can be easily detected. Navigate to a sale by clicking on the blue Sale ID then navigate to the Lines section.
In the section titled Inventory Lines, the Inventory ID 470 will show all transactions that will be affected by changing the unit cost. Not only will the change affect this past transaction it will also adjust the unit cost of any remaining stock from the same lot. In the image above, the FIFO Cost (First In, First Out) is what the unit cost currently is for this item. To adjust the unit cost, simply click on the Inventory ID or the FIFO cost and enter the new value.
NOTE: This will not retroactively adjust the average cost of the sale item. To adjust a sale item's average cost field retroactively, simply go to to the Lines > Sales Lines section of a report and edit the value in the AVG. COST field.
To view the details of a particular lot of units, you can:
- Click on an Inventory ID in the History tab of the item or
- Click on its Unit Cost or the Inventory ID in the Inventory Lines of a specific sale
From here, you can edit the cost of the units in this particular lot:
- Cost/Unit: Cost for each unit in the lot
- Qty In: How many units were added in this lot
- Qty On Hand: How many units from this lot remain
- Qty Out: How many units have left from this lot
- Adjustments: Number of units manually removed
Instances where the inventory was changed can be seen in the following sections:
- Inventory Transactions: All transactions with units from this lot
- Inventory Adjustments: Log of each adjustment
Lightspeed highly recommends exporting your Asset report on a monthly basis. The Asset report will give you information on all your current assets. This report will also help to identify any potential issues with your inventory by correcting any abnormal margins, costs or prices. Exporting this report on a regular basis will allow you to easily look back at your inventory over time.