The Cost or Purchase Price recorded on purchase transactions is important for inventory management because it can affect the calculation of the cost of goods and COGS (Cost of Goods Sold). However, under certain conditions, the Cost recorded on a purchase transaction may differ from the expected Cost calculation.
For example, a purchase transaction may be created without entering a purchase price for an item, causing the Cost to be recorded as 0. Another situation may occur when there are changes or updates to the system that affect how the Cost is calculated, such as discounts being included in the Cost calculation.
For these situations, DealPOS provides the Tools App, which can be used to recalculate the Cost of purchased items. This process recalculates the Cost value on the purchase transaction based on the Current Cost available at the time the recalculation is performed.
This allows purchase transactions with inaccurate Cost values to be updated without having to manually re-enter the transaction.
I. When Should You Recalculate Purchase Order Item Cost?
The recalculate function does not need to be used for every purchase transaction. This tool is intended for specific situations where the Cost value recorded on a transaction needs to be adjusted. Some common use cases include:
1. The Cost on a Purchase Transaction Is Inaccurate
One common case occurs when a purchase transaction or Supplier Bill is created without entering the item's purchase price. For example, a purchase transaction may have the following details:
Item | Qty | Cost |
Product A | 10 | Rp 0 |
Product B | 5 | Rp 0 |
If the transaction has already been processed, the Cost stored on the transaction will remain based on the value available when the transaction was created. If the Current Cost for the item is now available and accurate, you can recalculate the transaction so that the Cost on the Purchase Order Item Purchased follows the latest Current Cost.
This helps prevent situations where a purchase transaction contains a Cost that does not accurately represent the actual cost of the item.
2. Correcting Cost Calculation After a Version Update
Recalculate can also be used when there is a change to the Cost or COGS calculation in DealPOS. For example, consider a purchase transaction with the following details:
Item | Purchase Price | Discount | Cost |
Product A | Rp100,000 | Rp10,000 | Rp100,000 |
Under the previous calculation method, the discount may not have been included in the Cost. After a system update, the Cost calculation may include the discount, resulting in a more accurate cost value. In this situation, older transactions may still have Cost values calculated using the previous method and may need to be recalculated. By performing a recalculate, the Cost value can be updated based on the Current Cost available at the time the process is performed.
Note: Recalculate should only be used when a Cost adjustment is required. Make sure the Current Cost of the item is accurate before running the process.
II. How Does Recalculate Purchase Order Item Cost Work?
Before performing the process, it is important to understand how recalculate works.
Essentially, the process retrieves the item's Current Cost and uses it as the basis for updating the Cost value on the Purchase Order Item Purchased. In simple terms:
Current Cost at the time of Recalculate → Cost on Purchase Order Item Purchased
This means that the Cost value does not necessarily follow the value recorded when the transaction was originally created. Instead, it follows the Current Cost available when the Recalculate process is performed. For example:
Cost on the original transaction: Rp100,000
Current Cost before Recalculate: Rp90,000
Current Cost when Recalculate is performed: Rp90,000
Cost after Recalculate: Rp90,000
If the Current Cost changes before the process is performed:
Cost on the original transaction: Rp100,000
Latest Current Cost: Rp95,000
Cost after Recalculate: Rp95,000
Therefore, make sure that the Current Cost is accurate before performing the process.
III. Steps to Recalculate Purchase Order Item Cost
Step 1. Open the Tools App
Open tools.dealpos.app, go to Unit Cost menu, click Purchase Order Price tab
Select the date range for the purchase transactions to be recalculated.
Step 2. Run the Recalculate Process
Run the Recalculate process to update the Cost value on the purchase transaction.
The system will recalculate the Cost based on the Current Cost available when the process is performed.
Step 3. Verify the Updated Cost
Suppose a purchase transaction was created with the following conditions:
Current Unit Cost Product:
Because the Cost was recorded as Rp 50,000 when the transaction was created, the transaction does not accurately represent the actual item cost. After performing Recalculate Purchase Order Item Cost, the system will use the Current Cost available at the time of the recalculation. The result will be:
The Cost value on the purchase transaction will now match the latest Current Cost.
IV. Things to Consider Before Recalculating
Before running the recalculate process, there are several things to keep in mind.
1. Make Sure the Current Cost Is Accurate
Because the recalculation result follows the Current Cost available when the process is performed, make sure the item's Current Cost is correct before running the process.
2. Recalculate Can Change the Transaction Cost
This process does not simply display a new calculation. The Cost value on the purchased item can be updated based on the latest calculation. Therefore, use this tool only for transactions that actually require a Cost adjustment.
3. Consider the Impact on COGS
Cost is one of the components that can affect COGS calculations. If the Cost of a transaction changes, the resulting COGS related to that transaction may also change.
4. Use It for Transactions That Require Correction
Recalculate is best used as a corrective tool, for example, to fix transactions with inaccurate Cost values or to adjust transactions affected by changes to the Cost calculation.
V. Conclusion
Recalculate Purchase Order Item Cost in the Tools App helps update the Cost value on purchase transactions so that it follows the latest Current Cost. This tool can be used in several situations, such as when the purchase price was not entered, the Cost was recorded as 0, or changes to the Cost calculation method require older transactions to be recalculated. With the recalculate process, users do not need to re-enter an entire purchase transaction simply to update its Cost value. As long as the item's Current Cost is accurate, the process can help maintain more accurate Cost and COGS values based on the latest calculation.
Related Articles
In a purchase transaction, have you ever made a return? You can access all purchase returns that occur through the Reports menu. You can check the detailed explanation in the following article Purchase Return Report
If you want to see the purchase report in more detail, you can check this article for the steps Purchase Report Detail
To return purchase transaction Purchase Transaction Return
DealPOS is an online point-of-sale (POS) application specifically designed for retail businesses in categories like Fashion, Minimarkets, Electronics, Fresh Food, and Building Material Stores.
With DealPOS, you can manage both online and offline store inventory in real-time on a single platform. You can also sell through omnichannel (offline and online) as DealPOS integrates with marketplaces (Shopee, Tokopedia, TikTok Shop, Lazada) and instant web stores (Shopify and WooCommerce).
For more detailed financial book-keeping, Books App is available as a separate accounting application. In addition, stock counting becomes easier with the DealPOS Scanner App, which supports barcode scanning features.