Disclaimer: This article is only for the old version of Zenoti Reports.
The old version of Zenoti Reports calculates stock value periodically.
Let’s consider the following transactions on Hair Shampoo 100ml at your center and calculate the average cost at each transaction based on periodic average cost.
Periodic Average Cost
The periodic average cost considers the stock of the last three months from the transaction date while ignoring any zero-priced orders within the last three months.
An alternate costing method is Perpetual Average Cost which is by default enabled for the latest version of Zenoti reports.
Let’s say that your center purchased or transferred the Hair Shampoo 100ml from Jan to April. With periodic average cost, the cost of the product is calculated as follows,
Jan – Total cost of the transaction in Jan / Cumulative Quantity
Feb – Total cost for transaction for Jan and Feb / Cumulative Quantity
Mar – Total cost for transaction for Jan, Feb, and Mar / Cumulative Quantity
Note: Till this period, the average cost is calculated accurately.Apr – Total cost for transaction for Feb, Mar, Apr / Cumulative Quantity
Note: Here, the stock is considered only for the last three months – it is not the cumulative cost to date as it does not consider stock from Jan month. This does not result in an accurate calculation of the average cost.
Transaction | Details | Transaction Cost | Periodic Average Cost | Total Cost based on Periodic Average Cost method | Cumulative Qty |
Purchase | Purchased 10 bottles of Hair Shampoo 100ml at $10 each on Jan 1st | 10x10= $100 | 10 x 10 /10= $10 | $100 | 10 |
Purchase | Purchased 20 bottles of Hair Shampoo 100ml at $15 each on Feb 1st | 20x15= $300 | (100 20x15)/(20+10)= $13.33 | $400 | 30 |
Transfer (In) | Transferred 10 bottles of Hair Shampoo 100ml at $20 each on Mar 1st | 10x20= $200 | (100 + 300 +10x20)/(30+10) = $15 | $600 | 40 |
Purchase | Purchased 10 bottles of Hair Shampoo 100ml at $18 each on Apr 1st | 10x18= $180 | (300 +200 +10x18)/40 = $17 | $850 | 40 |