Zero or empty cost at the beginning of the month: explanation and actions

Cost of goods disappears on the 1st day of a new month: why this happens

If the cost of goods disappears or shows a zero value in the «Stock Status» form in Torgsoft on the 1st day of a new month, this does not mean there is an error in the database or damaged accounting data. This situation is related to the fact that the cost of goods has not yet been calculated for the new monthly period, and its display depends on the selected calculation method and the date of the last recalculation.

The cost of goods in stock status, depending on the selected calculation method, displays either the average value of product balances in the current month or the last purchase price up to the last day of the current month. When the 1st day starts and a new period is created (a new month), the cost of goods will not be displayed for any product until it is calculated, because it has never existed before for this new month.

The absence of cost values at the beginning of the month in the «Stock Status» form does not affect the program’s important financial indicators, as they will be correctly overwritten during calculation. Due to the specifics of product implementation, this operating principle will not be changed.

How to resolve the issue of missing cost of goods on the 1st day

To display the cost of goods at the beginning of the month, you need to perform one of two actions:

1. Manual recalculation. The user can independently recalculate the cost of goods for all products in the «Stock Status» form.

2. Automatic recalculation (recommended). If the computer (server) works around the clock, the issue is solved by automatic nightly cost calculation. It must be configured, for example, at 01:00 at night through the menu «Settings» - «Scheduled tasks» - the «Cost calculation» tab.

What cost calculation methods are available in Torgsoft

The program offers several algorithms for cost formation, which are selected in the menu «Settings» - «Parameters» - «Accounting». The selected method directly affects how profit is formed and how stock balances are valued.

1. Last purchase price 

With this method, the cost of goods in stock status is always equal to the product’s last purchase price. If the product was purchased in foreign currency, the cost is calculated using the nearest current exchange rate.

2. By supply batches (FIFO) 

The cost of goods in stock status is calculated as the average purchase price of the product based on balances across the entire retail network. For expense documents (sales), the program uses the FIFO method («first in — first out»).

• Example: if 10 pcs. were purchased on the 1st day at 30 UAH, and 20 pcs. were purchased on the 2nd day at 40 UAH, the average cost in stock will be 36.66 UAH. But when selling the first 15 pieces, the cost of goods sold will be calculated as follows: 10 pcs. at 30 UAH + 5 pcs. at 40 UAH. The program finds the receipt invoice from which the product was taken and inserts its price into the expense document.

3. By supply batches by accounting centers 

This method works correctly only if your network has no internal transfers between stores (accounting centers). The cost of goods in expense documents is calculated separately for each accounting center, without taking into account receipt invoices from other stores. However, in stock status, the cost of goods will be displayed as the same average value based on balances across the entire retail network.

4. By supply batches and exchange rate 

This method works similarly to the standard «By supply batches» method, but takes currency fluctuations into account. If the purchase was made in foreign currency, the cost of goods is calculated using the nearest exchange rate at the time of calculation.

5. By supply batches with internal transfers taken into account (most accurate)

When this method is activated, each accounting center (store) can have its own individual cost of balances for the same product. Internal transfers between stores act as «carriers» of cost.

Cost recalculation rules: when you initiate the action «Recalculate cost of goods for all products», the program calculates it only for those products that had movement (receipt, sale, return, write-off) since the last recalculation in the current period. If this is the beginning of a new period (the 1st day), the cost of goods is calculated globally for all products. You can also forcibly recalculate the cost only for selected products in the stock form. If a product was sold «in negative stock» (without stock availability), its cost of goods sold will be 0.00 until the negative balance is covered by a receipt and recalculation is performed.