Currently, in Zenoti, there are two costing methods for inventory:

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

Transaction

Details

Transaction Cost

Perpetual Average Cost

Periodic Average Cost

Purchase

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

10x10=

$100

10 x 10 /10=

$10

10 x 10 /10=

$10

Purchase

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

20x15=

$300

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

$13.33

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

$13.33

Transfer (In)

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

10x20=

$200

(400 +10x20)/(30+10) = $15

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

Purchase

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

10x18=

$180

(600+10x18)/(40+10) = $15.6

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

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