Stock and average prices

Here are examples of how Xena adjusts and calculates the average price of articles with stock management.

 

Calculation of average price with different purchase prices:

In this example, the following is illustrated:

• The current average price of the article is DKK 90.00.
• Purchase 3 units at a price of DKK 100.00.
• Sell 1 unit.
• Purchase 1 unit at a price of DKK 90.00.

1: I record the purchase delivery of 3 units. There are now 2 entries recorded.

• 'Stock' is temporarily recorded at the current average price (DKK 90.00) since I haven't recorded the purchase invoice yet.
• The offset is 'Unpaid stock' The account 'Unpaid stock' is just an intermediate account where purchases are temporarily recorded until the exact quantity/price is known.

 

 

2: Now I record the purchase invoice for the 3 units at DKK 100.00, which is DKK 10.00 higher than the average price of the article.

• 'Stock' is adjusted with the increased value of DKK 30.00, and 'Unpaid stock' is adjusted and becomes zero.

 

 

3: Now I record a sales invoice for 1 unit. I deliver the articles along with the invoice. Then I record a new purchase delivery of 1 unit.

• The sales invoice creates entries in 'Product consumption,' 'Stock,' and 'Net turnover.'
• The purchase delivery adjusts 'Stock' upward by DKK 100.00 since this is the current average price. The offset for this entry is, as usual, 'Unpaid stock.'

 

 

4: Finally, I record the purchase invoice for 1 unit with a price of DKK 90.00.

• 'Stock' is adjusted downward by DKK 10.00 since I bought the article cheaper than the previous average price. At the same time, 'Unpaid stock' is adjusted to zero.

 

 

5: Looking at the article's average price, it is now DKK 96.67. It is calculated as follows:

• 2 units in stock from the first purchase invoice = DKK 200.00
• 1 unit in stock from the last purchase invoice = DKK 90.00
• The average price is DKK 290 divided by 3 = DKK 96.67.

 

 

Adjusting the average price of articles with reserved stock:

A reserved stock means there is a negative quantity in stock.

In this example, the following is illustrated:

• The current average price of the article is DKK 10.00.
• Current stock: 1 unit
• Sale of 11 units
• Purchase of 20 units at a price of DKK 15.00

1: I create a sales invoice for the article, selling 11 units. I deliver the articles along with the invoice.

The sale creates a series of financial entries, but we focus here on the entries created in Product consumption. All entries are based on the article's current average price, which is DKK 10.00.

• One entry in 'Product consumption' covers the unit we had in stock. The offset for this entry is 'Stock.'

• The other entry in 'Product consumption' covers the 10 units I sold without stock coverage. The offset is the intermediate account 'Stock Reception,' used as an intermediary for recording the temporary stock shortfall.

 

 

2: Now I create a purchase invoice for the article, purchasing 20 units at a price of DKK 15.00. I deliver the articles along with the invoice. After posting the purchase order, additional entries are created in Product consumption:

• Since my previous average price was DKK 10.00, it needs to be adjusted as the purchase price has increased to DKK 15.00. Therefore, an adjustment of Product consumption for 10 * DKK 5.00 = DKK 50.00 is recorded.

• At the same time, the average price of the article is correctly adjusted to DKK 15.00.

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