Revaluation of goods

Revaluation in Torgsoft: rules, protocols, and responsibility

In Torgsoft, the revaluation mechanism makes it possible to adapt flexibly to market changes, whether they are exchange rate fluctuations or changes in supplier terms, while ensuring strict control over staff actions. Understanding the rules for working with revaluation acts, change protocols, and access right settings is the foundation for building a transparent inventory accounting system, where every price tag change is justified, recorded, and safe for the owner.

When is product revaluation needed?

Product revaluation is one of the key pricing management tools that business owners use to maintain profitability, adapt to market conditions, and stimulate sales.

1. Change in the purchase cost from the supplier 

The most common reason for revaluation is the arrival of a new batch of goods at a different price. If you receive goods that were already in stock earlier and set a new retail price for them, this change will automatically apply to the entire remaining stock of these goods at the current accounting center. This is done in order to maintain the desired markup percentage and not lose profit due to an increase in the purchase price.

2. Exchange rate fluctuations 

If goods are purchased in a foreign currency (dollar, euro, etc.) and sold in the national currency, their retail and wholesale prices require dynamic adjustment depending on the current exchange rate. In cases of a sharp exchange rate change, revaluation makes it possible to recalculate selling prices very quickly based on the equivalent product price in foreign currency. This guarantees that the business owner will not sell goods at a loss due to the depreciation of the national currency.

3. Stimulating sales of slow-moving goods 

Revaluation is necessary for goods that have been in stock for a long time and sell poorly. As a result of analyzing such goods, the owner can quickly reduce the price or set a special product discount to speed up their sale. This makes it possible to free up shelf space and recover funds tied up in slow-moving stock.

4. Markdown of defective goods or goods with defects 

If defective goods arrive at the store but are still suitable for sale, they can be revalued (marked down). During such a product revaluation, the product is assigned the status «Marked Down». This means that the product will be sold at a reduced price, it cannot be returned by the customer, and standard customer discount discounts will not apply to it.

5. Running marketing promotions and artificially creating discounts 

To attract customers, store owners often use a marketing technique: they artificially raise retail prices before a sale and then set a percentage discount on the goods. As a result, the final discounted price becomes equal to what it was before the revaluation. In this way, the owner does not lose profit, while customers are psychologically motivated to buy when they see large discounts on the new labels.

6. Mass change in pricing policy

Sometimes there is a need to change prices globally — for example, to increase or decrease prices for all goods, for a certain product group, or for goods of a specific manufacturer or season. In such a case, revaluation is performed in bulk: prices can be changed by a specified percentage or by a specific amount in hryvnias. This may apply to both retail and wholesale prices.

7. Regional pricing and promotion of new stores 

Revaluation may be needed when opening a new retail outlet or entering a new market. For example, to promote a new store, you can set lower prices (wholesale or regional). Later, when the outlet becomes popular, revaluation is carried out and prices return to the standard retail level. Also, if the setting for maintaining identical prices is enabled, a price change at the main warehouse will automatically lead to revaluation of this product at all other stores in the chain.

How to carry out revaluation correctly in Torgsoft?

Torgsoft provides several ways to perform product revaluation depending on your business processes (quick price change for one product, mass price change, scheduled revaluation, or revaluation due to an exchange rate change).

Here are the main and most correct methods:

Method 1. Scheduled revaluation through the «Revaluation Act» (Recommended for mass and controlled changes)

This method is the most correct for preparing for a mass price change. Its advantage is that it preserves the history: who changed the prices, when, and with what comment.

1. Go to the menu item «Document» — «Revaluation Act» and click «Add» to create a new document.

2. In the lower part of the window («Contents of the Revaluation Act»), add the goods that need to be revalued. This can be done by scanning barcodes or manually selecting from the warehouse (you can select an entire list of goods at once).

3. In the add window, specify a New retail/wholesale price or set a new discount percentage. It is also possible to change prices in bulk (for example, increase them by 10%) by selecting a list of goods and clicking «Change New Selling Prices».

4. Prices will not change in stock immediately. For the new prices to take effect, in the main window you need to click the «Apply Revaluation» button and select the retail outlets (accounting centers) where this revaluation should be applied.

5. From the same form, you can conveniently print new labels for the revalued goods.

Method 2. Quick (operational) revaluation through «Stock Status»

If you need to quickly change the price of one or several goods right now:

1. Go to «Warehouse» — «Stock Status».

2. For one product: double-click the product to open its card. Change the value in the «Markup (%)» field or simply enter a new amount in the «Retail Price» field and click «Save».

3. For a group of products (mass change): Select the required goods (you can use filters, for example, filter all goods of a certain supplier or brand and press Ctrl+A), then click the «Product Sales Terms» button and choose «Change Selling Price».

4. In the window, select the action: «Increase», «Decrease», or «Set» the price. Then specify the value in percentages or hryvnias, choose the rounding type (for example, to whole numbers or to 10 kopecks), and click «Change Price».

Method 3. Automatic revaluation during goods receipt

If you receive goods that were already previously in stock and specify a new retail price for them, the program will automatically change the retail price for the entire remaining stock of these goods at this accounting center. To avoid accidental mistakes when a seller does this unintentionally, it is recommended to enable the «Warn about product revaluation in receipt» switch in the document parameter settings.

Method 4. Dynamic revaluation through exchange rate changes

If you purchase goods in a foreign currency and sell them in the national currency, use the special mode:

1. Go to «Warehouse» — «Calculation of Retail and Wholesale Prices by Markup and Exchange Rate».

2. Filter the required goods, choose the «Calculation Method» (from purchase price or from equivalent price) and the «Exchange Rate» (for example, the nearest or only today’s).

3. Choose the «Price Change Method»: instantly or through a revaluation act.

4. Click the «Update Table Data» button, after which the program will recalculate the retail prices according to the new exchange rate and the markup you specified, and to apply the changes select the goods and click “Set Retail/Wholesale Price”

Method 5. Revaluation through markdown (Product Discount)

If a product sells poorly or is defective, you can mark it down without changing the base retail price:

1. In stock status, select the product and click «Set Discount for Product».

2. Specify the discount percentage.

3. To ensure that this discount is not added to customers’ discount cards and that the product cannot be returned, check the «Markdown» box, then click «Save».

Rules of revaluation during goods receipt

Goods receipt is performed through the «Document» — «Goods Receipt» mode. When you add goods to a receipt note, the program allows you to set the selling (retail) price in several ways. If you know the purchase price, you enter it in the corresponding field, and then specify the desired markup percentage (the «Markup %» field) — the program will automatically calculate the final retail price. You can also enter the retail price manually, and then the markup percentage will be calculated automatically.

To avoid accidental mistakes when a seller or inventory manager unintentionally changes the price for the entire available assortment, the program (menu «Settings» — «Parameters» — «Documents») provides the «Warn about product revaluation in receipt» switch. If it is enabled, the program will issue a warning that changing the retail price in this receipt note will affect the price of the same product that was already previously in stock. In addition, new labels for the revalued goods can be printed directly from the receipt form.

Revaluation protocol: recording changes

In order for the owner to control all changes in retail prices and for sellers to change price tags in the sales area on time, the Revaluation Protocol is used.

For a product to be automatically added to this list when the price changes in the receipt, it is necessary to activate the «Include product quantity in the revaluation protocol (generate revaluation protocol)» switch in the document settings.

In the «Document» — «Revaluation Protocol» mode, the entire history is recorded: what product it is, when the change occurred, what the old price was, and what the new price became. Features of working with the protocol:

• The «Quantity» column in this protocol shows not the current stock balance, but the quantity of the product exactly at the time of the revaluation.

• From this form, you can conveniently print new labels for all revalued goods by clicking the «Print Labels» button.

• For prompt staff notification, there is the «Show Revaluation Protocol on Login» setting. If it is enabled, when the program starts, employees will immediately see the list of goods whose price has changed, which is a direct signal to replace the price tags. The visibility of this window for sellers is also regulated by separate access rights.

Responsibility and access rights

Price management is a high-risk area, so Torgsoft implements a flexible system of access right separation (roles).

 Protection of commercial confidentiality.

The owner can prohibit staff from seeing purchase prices. If you uncheck the «Allowed to view purchase prices» option in the role settings, the corresponding block in the product card during receipt will be hidden. Please note an important nuance: if such a «restricted» user adds an existing product to a new receipt note, the program does not pull in the previous purchase price (so as not to «expose» it), but inserts the value 0.00 UAH. This is done intentionally: an ordinary employee only enters the quantity of goods that physically arrived, and later the owner or an authorized inventory manager opens this receipt note and enters the actual purchase and selling prices.

 Prevention of price manipulation.

To avoid situations where a cashier changes the price during a sale on their own, in the «Seller» role settings the permission «Allowed to change the selling price in sales» is removed. Access is also restricted to the «Change Selling Price» form and to the ability to set manual discounts for a product. Any actions to change the selling price are recorded in the system: this can be checked through «File» — «User Action Log» or directly in stock status through the «Price and Discount Change History» action.

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