Candela Cost Price and Retail Price Management FAQs
How Cost Price is managed by Candela?
Candela manages weighted average cost price for inventory items. Weighted average cost is recalculated when a GRN (goods receipt note) is posted in Candela. GRN Posting can be done from Menu: Purchase > GRN Posting. All GRN effect is applied on item cost which are between last GRN posting time and current GRN posting time.
System calculates the average cost price based on quantity at hand, current cost price, newly purchased quantity, and new purchase price. When GRN cost posting is reversed, then weighted average cost price goes to previous state.
Current weighted average price is saved for every sale invoice and helps in calculating COGS (cost of goods sold).
Note: To maintain weighted cost price in Candela “Enable Weighted Price Config” and “Allow GRN Posting” flags should be “Checked” in system configuration. This can be done from Menu: Configuration > System Configuration > Sales/Purchase Tab
I have not made a GRN (goods receipt note) but system has recorded cost price in a sales invoice. How?
When you define a new product, you enter the product cost price in the text box “Average Cost Price”. This price is saved by the system as cost price for the item. When first GRN is made and posted, then this cost price is overwritten by the actual cost price.
How can I check the COGS (cost of goods sold) against a sales invoice?
While making a sales invoice, system records the COGS in respective invoice. For the purpose of calculating the gross margin this cost is subtracted from Net Sales value. The COGS amount can be checked in Profit Margin report. This report is available in Menu: Reports > C-Sale Reports > C-30 Product Wise Sales Profit Margin Report
How can I check the current Average Cost Price for inventory items?
You can check the current average cost price of inventory items (products) from different reports. You can open G01- Product Price with Profit Margin report to view cost price, retail price, and profit margin of selected products. You can also view the cost price through Change Cost Price Utility. The utility is available in Menu: Utilities > Price Utilities > Change Product Cost Price.
I have made a new GRN at a different price but average cost price of items has not changed. Why?
Average cost price is changed for inventory items on the basis of newly purchased quantity and purchase price when a GRN is posted. Before GRN Posting, this effect is not applied to inventory items. GRN Posting can be done from Menu: Purchase > GRN Posting.
I want to manage cost price manually. Can I do this in Candela?
In Candela you can manage the cost price manually. Please Note that this is NOT A RECOMMENDED PRACTICE. In this case some of the system reports which calculate the cost price on historical basis may have a mismatch. In this mode the GRN and its posting will have no effect on product cost price. If you want to change the cost price then you will have to manually update the cost price using Change Cost Price Utility. The utility is available in Menu: Utilities > Price Utilities > Change Product Cost Price.
To maintain manual cost price in Candela “Enable Weighted Price Config” and “Allow GRN Posting” flags should be “Un-Checked” in system configuration. This can be done from Menu: Configuration > System Configuration > Sales/Purchase Tab
How Can I change the Cost Price of Inventory Items (Products)?
You can change the cost price using Change Cost Price Utility. The utility is available in Menu: Utilities > Price Utilities > Change Product Cost Price.
Note: If you are using weighted average cost price, then you should not use this facility because cost is automatically being managed by system based on GRN
How Can I change the Retail Price of Inventory Items (Products)?
You can change the Retail Price using Change Retail Price Utility. The utility is available in Menu: Utilities > Price Utilities > Change Product Retail Price.
This utility allows to change the retail price of all selected product in one go. You can change the price based on percentage increase/decrease with respect to existing retail price or cost price.
When I use Retail Price Change Utility, will the system maintain history of previous retail prices for inventory items?
While using Retail Price Change utility, you have option of “New” or “Update”. When you select “New” option for retail price changes then system keeps record of the previous retail price. The previous price is closed with yesterday date (one day less than the date displayed on screen) and your new price starts with Today date. However, if you need to change the product retail price more than once in one day, then second time you cannot change the price in “New” mode. For this you have to select “Update” mode and then price can be changed. So if multiple price changes are recorded in one day then only the last price change history is available.
I do not want to show Cost Price to some system Users. Can I do this?
When you create Users in the system, each of the User can be assigned special rights to view cost price in Candela. This can be done if the “Enable View Cost Price” checkbox is “Checked”. If this checkbox is “Un-checked” then Cost Price will be hidden from User in different reports and transaction screens. You can modify Users through Menu: Security > Users
Can I change the retail price of the product while making GRN (Goods Receipt Note)?
Retail price can be changed while making GRN, if relevant system configuration is done. This can be done from Menu: Configuration > System Configuration > Sales/Purchase Tab. On this Tab “Enable Editable Retail Price Config” should be “Checked”.
Note: This will work for Candela personal version. For Professional or Enterprise versions, this facility will be available to warehouses which are directly connected to server. For remote warehouses this facility of retail price editing will not be available.
How do I manage Cost Price of an Assembly item?
When you define an Assembly Product you provide the Cost Price of that Assembly item. Generally Cost Price of the Assembly Item is the sum of the cost of all inventory items which make up an assembly (its recipe). If this assembly is always created by converting its recipe products then you can manage the cost price of assembly items based on the cost price of its recipe. This means you can bind the Cost Price of the Assembly Product to the Cost Price of inventory items which are in its Recipe. This can be done from Menu: Configuration > System Configuration > Product Tab. On this Tab “Auto Update Assembly Cost” should be “Checked”. Now, when the Cost Price of any one of the Recipe Items will change, then cost price of the Assembly Product will automatically be adjusted.
I run a retail chain store. I want to setup different retail price for some of my retail outlets. Can I do this in Candela?
Candela allows you the set shop based retail prices for products. To do this first make the system configuration from Menu: Configuration > System Configuration > Product Tab. Here select the “Price Methodology” as “Shop Based”. Now the system will first lookup for a shop based price while making an invoice. If shop based price for that product is not found then system will bring “standard” price for the invoice.
Shop based prices can be entered through Menu: Configuration > Misc > Shop Based Product Prices.
I want to sell selected products to different customers at different prices. Can I do this in Candela?
Yes you can do this in Candela. This can be done through the following steps:
1. Create Customer Types. Customer Types can be created through Menu: Configuration > Misc > Customer Type. For example, if you want to create three different prices for customers then create three different customer types.
2. Next You define Customer Type based prices for selected products. Customer Type based prices can be entered through Menu: Configuration > Misc > Customer Type Based Product Prices.
3. Now you need to select Price Methodology. To do this change the system configuration from Menu: Configuration > System Configuration > Product Tab. Here select the “Price Methodology” as “Customer Based”. Now the system will first lookup for a “Customer Type” based price while making an invoice. If Customer Type based price for that product is not found then system will bring “standard” price for the invoice.
4. Now when invoice is made for a customer then system will find the "Customer Type" which is associated with that particular customer (You can always change or update the associated Customer Type from Customer Definition screen). If product price is found for this Customer Type, then that price will be loaded on the invoice. Otherwise, standard price will be loaded on the invoice.