As you purchase items from your distributors/suppliers/vendors, the costs of these items will fluctuate over time.
There are two ways you can choose to display the cost per unit of your items.
- Display the most recent invoice price
- Display a weighted average based on the current stock count and what is being added from the invoice
For WISK Beverage venues, the most recent invoice price displays by default.
For WISK Food venues, the weighted average is the default. This is because there is typically a higher volume of invoices/orders.
For an example of how these work, please see Pricing Examples below.
Toggling Weighted Average Pricing
To toggle Weighted Average Pricing on or off:
1. On the WISK Web Portal, hover your cursor over your user name on the bottom left and click “Venue Settings”
2. Scroll down on the Venue Settings window and click the checkbox beside “Weighted Average Pricing” to toggle it on or off.
3. If your venue has a lot of historical data, it will need to be recalculated using the new pricing method. If it doesn’t update in a few minutes, you can trigger a manual refresh of your data on the Home / Dashboard page. Scroll to the bottom of the page and click the “Refresh dashboard data” button.
Most Recent Invoice
If pricing is based on the most recent invoice, the cost/unit will update whenever an invoice is added.
In this example, the cost per unit of the item is currently $10.
We then add an invoice where we received 60 units at $12/unit. The cost per unit then updates to that value.
The updated value is then used in all calculations (costing, consumption, inventory value, etc.).
You can see the price/invoice history by hovering your cursor over the cost per unit and clicking the information icon.
This gives you a breakdown of every invoice added for the item, displaying the date, time, number of units received, and the cost on the invoice. To view an invoice, you can click the “...” button beside it.
If weighted average pricing is selected, the cost per unit of an item will update whenever an invoice is added, and whenever an inventory count is completed.
Let’s look at the same example as above, except this time, weighted average pricing is toggled on. In this case, we begin with 30 units at a cost of $10/unit.
We then add an invoice where we receive 60 units at $12/unit. We now have 90 units, and the cost per unit becomes $11.33.
This is because we have 30 units at $10 ($300) and 60 units at $12 ($720). We take the total value ($1020) and divide it by the total number of units (90) to get the new cost/unit. In this case:
1020 / 90 = $11.33
As the week continues, we sell some of the item, and then take another inventory count. We now have 80 units (10 were used/consumed). After the inventory is submitted, the cost/unit will update based on the principles of First In First Out (FIFO). The cost per unit is now $11.50.
This is because the amount consumed (10 units) is removed from the older stock that we had at $10/unit. As a result, we now have 20 units at $10 ($200) and 60 units at $12 ($720). By taking that total ($920) and dividing it by the total number of units (80), we get:
920 / 80 = $11.50
Theoretically, if we sold more than 30 units that week, the cost per unit would now be $12, since we no longer have any of the older stock on hand.