How to use catalogue pricing

Step 1

Head to Company under the Global Settings tab, and click on Sales & Purchases.

Step 2

Click the checkbox next to Enable Catalogue Price.

This will ensure any Catalogue Prices you set, will be the default price when purchase orders are created.

Step 3

Let’s look at the item Steel Welding Wire. Its unit cost is $8.99, and this cannot be modified because it is a managed item.

Therefore, if a supplier informs you of a price change, the unit cost cannot be overtyped.

Step 4

Instead, enter the supplier's new price into the Catalogue Price field.

$10.99 will become the default price for this item when you create a new purchase order.

Step 5

If you create a new purchase order for Steel Welding Wire, you can see the cost is now $10.99 - the catalogue price just created.

On the right-hand side, you can see the item’s purchase order history, and the unit cost was $8.99 for previous orders.

Step 6

Once the order is sent and received, head back to the item Steel Welding Wire under materials.

The unit cost has changed to $9.13. This is because, as a managed item, its cost is calculated using the average cost method; total unit costs divided by the total quantity in stock. 

Since your latest purchase was at a higher price, the average unit cost has increased.

Step 7

Step 8

You cannot edit or delete the last purchase cost.