Disclaimer: This article is only for the old version of Zenoti Reports.


The old version of Zenoti Reports calculates stock value periodically.

Let’s consider the following transactions on Hair Shampoo 100ml at your center and calculate the average cost at each transaction based on periodic average cost.

Periodic Average Cost

The periodic average cost considers the stock of the last three months from the transaction date while ignoring any zero-priced orders within the last three months.

An alternate costing method is Perpetual Average Cost which is by default enabled for the latest version of Zenoti reports.

Let’s say that your center purchased or transferred the Hair Shampoo 100ml from Jan to April. With periodic average cost, the cost of the product is calculated as follows,

  • Jan – Total cost of the transaction in Jan / Cumulative Quantity

  • Feb – Total cost for transaction for Jan and Feb / Cumulative Quantity

  • Mar – Total cost for transaction for Jan, Feb, and Mar / Cumulative Quantity
    Note: Till this period, the average cost is calculated accurately.

  • Apr – Total cost for transaction for Feb, Mar, Apr / Cumulative Quantity
    Note: Here, the stock is considered only for the last three months – it is not the cumulative cost to date as it does not consider stock from Jan month. This does not result in an accurate calculation of the average cost.

Transaction

Details

Transaction Cost

Periodic Average Cost

Total Cost based on Periodic Average Cost method

Cumulative Qty

Purchase

Purchased 10 bottles of Hair Shampoo 100ml at $10 each on Jan 1st

10x10= $100

10 x 10 /10=

$10

$100

10

Purchase

Purchased 20 bottles of Hair Shampoo 100ml at $15 each on Feb 1st

20x15=

$300

(100 20x15)/(20+10)=

$13.33

$400

30

Transfer (In)

Transferred 10 bottles of Hair Shampoo 100ml at $20 each on Mar 1st

10x20=

$200

(100 + 300 +10x20)/(30+10) = $15

$600

40

Purchase

Purchased 10 bottles of Hair Shampoo 100ml at $18 each on Apr 1st

10x18=

$180

(300 +200 +10x18)/40 = $17

$850

40

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