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 |