Find this screen
Open: Stock Control > Enter Transactions > Adjustments > Revalue Stock
How to
Change the average buying price of a stock item
- Choose the stock item.
- Enter the new price.
- Click OK.
Useful info
When to use this
Use this when you want to change the average buying price calculated by Sage 200. You can only do this for items that use the FIFO and average costing methods and that have items in stock.
You may need to do this:
- If goods have been received at the wrong price.
- When the average buying price in Sage 200 is no longer representative of the price you're actually paying.
- When you've had a number of small price variations, and you want to round the price up or down. For example, change the average price from £13.46 to £13.50.
This updates the average buying price of all items currently in stock. The View Buying Prices screen will now only have one price.
About the average buying price
This is the average price that you've paid for the your stock items.
The average buying price is calculated in the following way:
((Current Total Qty in Stock * Current Average Buying Price) + (Quantity Brought In * Price Brought In) )/ (Current Total Qty in Stock + Quantity Brought In).
For example:
- You buy three items at £10. The average buying price is £10.
- You sell one item. The average price is still £10 as the average price isn't affected by outgoing (sold) stock.
-
You buy a third item at £16. The average buying price is becomes £12.
No in stock Av price No In Price In Total in stock ( ( 2 * 10 ) + ( 1 * 16) ) / 3 -
You buy a fourth item at £8. The average buying price is now £11.
No in stock Av price No In Price In Total in stock ( ( 3 * 12 ) + ( 1 * 8 ) ) / 4
Where can I see the buying prices?
- On the stock record (Stock List > Amend Details | Details)
- On the View Buying Prices option. This shows you the cost price paid for the items you have in stock.(Stock List > View > View Buying Prices).
Where is the average buying price used?
Here are some examples of how the average buying price is used in Sage 200:
-
Sales order profit.
The estimated cost shown for sales order profit calculations is the average buying price for stock items using the 'FIFO' or 'Average' costing methods.
You can change this if you have the correct user permissions
-
Stock valuation.
Stock items that use the 'Average' costing method are valued using the average buying price for that item.
Questions
How do I change the price for items that use the standard cost method?
You change the cost price on the stock item record. (Stock List > Amend Details | Details).