The user of the LoMag storage program has the option to change the purchase and sale price for the given item. These suggested prices are different from the original (issued) documents. They are only intended to facilitate the use of the software. On the other hand, the real prices are the amounts calculated on the basis of the documents that we have obtained from the sale of the given item.
To add the suggested price, move your cursor to the items tab and select the Item list option, or use the keyboard shortcut key [CTRL + T]. The window with the list of items in the current warehouse will be displayed.
In order to understand the differences between the suggested and real prices consider the following case. Let's start with an example where we will use a completely new product. A new item was created in the warehouse named onion, its initial state is 10 kg and the initial price is 2 USD.
In the screenshot above, you can see the status entered, the initial price and their position in the item list. The value of the good is the product of the initial state and the purchase price (10 kg x $ 2).
You can edit the existing item to add the suggested purchase price (it can also be done when you add a new item to the warehouse). In order to edit an existing item in the items list window, select it and use the 'edit' button or double-click it with the left mouse button.
When editing the item data in the settings for the suggested prices, enter the net or gross price (if you enter at least one value - the second will be automatically calculated by the LoMag software). By saving new parameters, we can see them in the items list.
When determining the value of the suggested sale price, use the instructions from the first step. The only difference that should be entered in the data edition field for the selected product is the default mark-up or margin.
To issue a new GRN document in the warehouse, click on the GRN icon at the top of the window or either used the keyboard shortcut [SHIFT + F2]. This will open a new GRN window.
The next step is to add the item into the document by using the 'Add' button. The LoMag user will be provided with a new window, where he can choose the type of product and he wants to add to the document. Choosing the onion for which in the previous steps we set the suggested prices, you can see that the Price field is filled with the amount of $ 2.00. It remains to correctly determine the number of goods accepted for the warehouse and confirm adding items to the document by clicking the OK button.
The price of the newly accepted goods for a warehouse may differ from the previously set price, the current trends in the markets such as the peak harvest season, drought or the winter season may influence this. To change the price, set its new value in the appropriate window. In the following example, we changed the price from 2 USD to 4 USD and introduced the amount of 40 kg.
To use the settings for the suggested sales prices, open the GIN documents from the warehouse by clicking on its icon in the main menu or using the [SHIFT + F3] keyboard shortcut. Open the window for adding goods to the document by using the 'Add' button.
When selecting an onion for which we have defined the suggested mark-up at a level of 50%, other field values such as sales price, and gross sales price will be automatically calculated. The base value for all conversions is the purchase amount, by adding new goods to the warehouse we have set the price for onions in the amount of USD 2.00, which resulted in the program calculating the sale price for $ 3.00 (with 50% mark-up). All fields are editable, which gives the possibility to change the value in one of the fields, and as a result, remaining values will be calculated by the program.
By adding new items in the warehouse, we have fixed the price of onions in the amount of 2.00 USD, without setting its date of validity. Then we add the 40 kg of onions at the purchase price of USD 4.00 with the expiration date of March 1, 2019. As a result of the above-mentioned actions, the LoMag program informs us with a yellow message that the inventory states include two deliveries with a preview of their most important parameters.
When issuing a document from a warehouse for a given item, the program automatically positioned the goods from the oldest issued to the latest document in the warehouse. In case, when we want to release goods from another delivery (it has a shorter expiration date than the previous one), click on the edit field and enter the quantity that we want to place in the document, simultaneously verify the value for the default state. We have changed the value of GRN document from 0 to 5 and the value of OB changed from 5 to 0.
In the screenshot above you can see the changed values for deliveries. When delivering the items from the warehouse, it is obvious that these values are come from the second delivery, while the parameters for the opening balance (adding a new product to the warehouse) are set at 0 kg. Attention! This caused a change in the sales price because the product with the currently selected delivery was purchased at the price of USD 4.00 - with a 50% mark-up. The suggested prices have recalculated the remaining fields according to the actual purchase amount.
To spend goods from the warehouse from the oldest to the latest deliveries, use the quantity parameter. In the above instruction, adding a new product to the store declared its condition at the level of 10 kg, and then the GRN document was added at the level of 40 kg in the warehouse. Filling the quantity field with a value of 20, the program will automatically determine that 10 kg should come from the first delivery and the remaining amount from the next one. The result will be a change in the 'Purchase Price', which is crucial when determining the price of the product while using the mark-up value (set for the product of the suggested sale price). In our example, 10 kg of onions bought for $ 2.00 for a purchase price of $ 20.00, and 10 kg of the same product was bought for $ 4.00 for a purchase price of USD 40. Adding the costs incurred for a given product, we get $ 60 for 20 kg.
By activating the item's catalogue through the items button, we can check the stock in the warehouse. Using our sample product, onion, you can see that the value of your goods in stock is a product of the state of 50 kg and Purchase price of 3.60 USD and its product is 180.00 USD. The purchase price is the value that we actually incurred for the purchase of a unit for a specific item. Adding a new product in the warehouse, onion, the price of $ 2.00 per kilogram was declared, which at 10 kg gives a sum of $ 20.00. Then, 40 kg of onions for 4.00 USD was accepted for a value of $ 160.00. The program automatically calculates the real purchase price for 1 kg of a given product by adding up expenses (20.00 + 160.00) and by the number of kilograms (50 kg). This gives a result of 3.60 PLN.
Attention! In the case when the items had a setup of the exceeded expiration date, then the stock level does not change - because the product is still in stock. Although it is not suitable for sale, its value is $ 0.00 and is not taken into account in the Purchase Price column. In our example, we declared that 40 kg of onions is valid until 1 March 2019. After exceeding this date, the inventory will still be 50 kg, but the value of the product will be only 20.00 USD because only 10 kg of onions will be considered, which we introduced as a new product by setting the validity period with it. In the screenshot below you can see that we have 255 kg of parsley available in the stock, but the value of the product is 0.00 PLN. This is due to the fact that all the goods have exceeded the expiration date.
The sale price is calculated based on the product of the purchase price and the default mark-up. In our case, USD 3.60, with a 50% markup, gives a result of USD 5.40.
In order to check the warehouse status for a given day, select the Reports tab in the main menu and choose the 'stock level in active warehouse' option from the drop-down list, or use the [CTRL + M] keyboard shortcut key. A new window will appear in which you should look for the goods you are interested in, and set the date from which day you want to get inventory for a specific product. In order to present the impact of different purchase prices for a given item and its default prices or sales values, we will use the onion product. Setting the date of storage as 28 Feb 2018 - which is, one day before the receipt of the next 40 kg in GRN (the document was issued on March 1, 2019).
In the screenshot above, you can see that there was 10 kg of onions on a given day at a unit price of 2.00 USD with the worth of 20.00 USD. The default sales price column is the effect of setting the 50% mark-up when adding the item, and the default value of the product is the product of the number of goods in the warehouse as well as the default sale price.
When choosing the date of stock, which already includes the purchase (receipt for the warehouse) of the goods at the new price, it should be noted that the unit price and value have been changed. The method of calculating these amounts has already been presented in the above instructions (heading 4). The default price and sales value are calculated based on the parameters that were set when adding or editing the item to the file. Therefore, despite the change in the unit price, the amount of PLN 3.00 is still included in the default selling price - which is calculated from the initial settings for the onion item at $ 2.00 per 1 kg and 50% of the mark-up value.