Inventory & Cost of Goods Sold

To calculate the "Cost of Sales", add your beginning inventory to the purchases made during the period and subtract that from your ending inventory.

Formula: Beginning Stock On Hand (Value) + Purchases (Value) - Ending Stock On Hand (Value)

Beginning/Ending Stock On Hand (Value)
To gather an accurate stock-on-hand value, you should perform an EOFY stocktake to ensure your stock counts are correct. Another stocktake is then performed in the following EOFY.
This report can be viewed via Reports > Stock Control > Sales Stock On Hand (Value).
The tricky part is working out which costs to use for your items, which are used for the above stock value report. HirePOS is primarily based on the "Weighted average" or "Market Value" methods. In Setup > Items, if you click an item to edit, then look at the Purchase/Disposal tab, there are the Cost Price fields that are used for the weighted average.

At present, these values are "user-defined", and can be exported and imported in bulk, via the Options menu in the Setup > Items list. Many business operators maintain a master stock list on spreadsheets for monitoring costs and metrics over time and calculating average prices, which are imported back into HirePOS. While "First In First Out" may be considered the most accurate method, these calculations would work on assumptions that every single PO has been accurately entered, line for line, into HirePOS since the beginning. The reality for most businesses is they cannot provide the expensive employee resources for these figures to be constantly updated and entered accurately.

Custom Report Templates
Report templates are fully customisable, so if you have a particular formula for calculating average inventory costs that are well suited to your business then we can tweak the Sales Stock On Hand (Value) and Cost/Profit reports to suit your requirements.

Purchases (Value)
Purchase Order values can be obtained from HirePOS via Reports > Purchase Orders. If you are using third-party accounting software like Xero or MYOB then this figure would best be obtained from your accounting software. Our accounting exporter tools can export Purchase Orders along with the relevant Chart Of Account codes, based on when the order was "received". Purchase Orders can be "partially" received and exported to one of the supported accounting systems.