Cost of products in Orderry is the actual purchase price at which products are posted into the Inventory. Since supplier prices can vary from batch to batch, the system automatically tracks each delivery separately. This allows you to maintain a stable retail price for clients while accurately calculating profit from sales and work orders.
In this article, you’ll learn how to correctly enter cost of products, where to monitor metrics, and how to correct errors in documents.
How product cost price is determined
The cost of products is entered into the system when products arrive at the Inventory, specifically during the posting process, since it is from these inventory stocks that sales, repairs, and other business processes are subsequently carried out.
When performing the posting of products, you must specify the purchase price of the product—this is its cost price. Learn how to perform the posting of products manually or via import.
After entering the purchase price, the system can automatically calculate other prices based on markups configured in the Settings > Prices and Discounts section.
💡Tip
If needed, you can also create a separate “Purchase” price type to store the purchase price as a separate price value for the product. This price type will be displayed in tables and documents alongside other prices if it is enabled in the settings.
Important: This does not replace the cost of products for batches, which is recorded during posting.
Where to view product cost price
In the posting document — the “Price” column displays the purchase price of the product at which it was posted.
In the product card on the “Batches” tab — the “Price” column shows the cost price of each individual batch of goods.
In work orders — after adding a product, you can view its cost price by hovering over the product price.
In reports — cost of goods sold is used to calculate profit and is displayed in financial reports, as well as some other reports.
How cost price affects operations
Cost of products is the foundation of financial and management accounting in Orderry. It directly impacts key business processes:
Automatic pricing and markups. The system uses cost of products as the base price to calculate retail prices according to configured markups. This allows you to quickly generate up-to-date product prices without manual calculations.
Profit calculation. Cost of products is used in reports to calculate profit from work orders and sales.
Employee salaries and bonuses. You can configure rules so that the cost of parts is deducted from the service amount before the technician’s commission is calculated. This helps calculate bonuses more accurately in cases where a product is charged to the client at a zero price, such as in warranty or promotional work orders.
Margin and product mix analysis. Based on the product cost, the system calculates the product margin in reports. This helps identify the most and least profitable items, adjust prices, and make decisions regarding the product mix.
Product cost calculation during write-offs
Writing off non-serialized products
For non-serial products, Orderry uses the FIFO principle: the product from the batch that was posted first is written off first. Therefore, the cost price in work orders, sales, or reports may not correspond to the most recent purchase price, but rather to the price of the batch from which the product was actually written off.
Writing off serialized products
For serialized products, the cost price is determined by a specific serial number. In the product’s details, you can view the batch, purchase price, and supplier.
How to edit or correct product cost price
If an error was made during posting, the method of correction depends on whether any transactions have already been performed with this product.
Product with no stock movements
You can simply open and edit the original posting document. Inventory movements include:
transfers between warehouses;
write-offs;
adding products to work orders or sales;
removing products from work orders or sales.
Important: The ability to edit inventory posting documents is available starting with the Business plan.
Product with existing stock movements (sold, written off, or transferred)
If any product movements have already been performed after the posting, it will be impossible to edit or delete the posting document. The solution depends on the type of product:
For serialized products: Write off the specific serial numbers with the incorrect price and create a new, correct posting for these units.
For non-serialized products: Since it is impossible to write off products from a specific batch, process a return to the supplier for the incorrect items, and then post them again with the correct purchase price.
Product cost in Orderry is not just reference information about the purchase price, but a powerful management accounting tool. Correctly entering the cost price from the very first step automatically ensures the proper functioning of the entire system: from retail prices for clients to payroll records for technicians.
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