Inventory Item Pricing - Overview

Learn the basics of inventory item pricing in AroFlo Office

Updated on February 26th, 2024

Table of Contents

If your business sells items from your inventory, you can set flexible pricing options using the Pricing Tab.

The pricing tab is used to record the actual cost of the item, set the sell value and set stock alert levels for replenishment.

Click the relevant expand for the kind of pricing you'd like to learn about.

 

Item cost

This is your basic costing for the item and basis for your markup calculations.

 

Cost Fields

Cost Setting
Description

Cost

 

Used to record the true cost of the item, i.e. what you paid for it.

 

Calculated Cost Type

 

This field takes figures from your purchase orders and uses them as a basis for your markup calculations. You can choose from:

 

  • Max: The maximum you've ever paid for the item.
  • Avg: The average of all the prices you've paid for the item over the past 12 months.
  • Last: The most recent price you've paid for the item.
  • Set: This allows you to manually enter a set cost for the item.
  • --- This setting disables the Calculated Cost Type function.
 
 

 

Sell pricing

The Sell area lets you set up either simple pricing or detailed pricing for an item.

Simple Pricing

Simple pricing is used to apply the same Sell price settings across Quotes, Tasks and Invoices.

 

Simple Pricing Fields

Default Markup Type Setting
Description

Not Set

 

This is the default. If you leave this option in place, the item markup will be determined by the Business Unit markup.

 

Cost + Markup

 

Used to set a markup (%) which is applied to the Cost to calculate the Sell price.

 

Calculated Cost Type (Max, Avg, Last, Set) + Markup

 

Used to set a markup (%) which is applied to the nominated Calculated Cost Type to calculate the Sell price.

 

Sell

 

Used to set a fixed sell or 'list' price, such as RRP. A sell price has no direct link to the Cost or Calculated Cost.

 

The Markup % and Sell values are linked. Changing one will re-calculate the other.

You can unlink the Markup % from the Sell value by un-ticking the Lock Pricing to Default Markup Type box.

Example: Setting a Cost price of $100, you could specify a Markup % of 25% (giving $125) when markup % is used, or an unrelated RRP such as $300 when Sell price is used.

You can then set Client Default Markups to charge one client based on the Markup % and another based on the Sell price.

 
 
 
 
 

Detailed Pricing

Detailed pricing lets you configure different price settings on Quotes, Tasks and Invoices. This is useful when you want to sell an inventory item for a different price in each scenario.

For example, with higher value items you may wish to apply different price settings based upon your business scenario:

  • Quote: Use Cost + Markup on a quote when you get special pricing for larger quoted work.
  • Task: Use Average Cost + Markup for standard do-and-charge work.
  • Invoice: Use fixed Sell when you sell items across the counter at a set RRP amount.
 

Detailed Pricing Fields

Area Setting Description

Quote

 

Default Markup Type

 

Quote pricing is applied when adding material items to a quote based on one of the following settings (as explained in Simple Pricing above):

 

  • Cost + Markup
  • Calculated Cost Type (Max, Avg, Last, Set) + Markup
  • Sell
  • Not Set

 

If quoted material items are added to a task, the same quote pricing will apply when an invoice is generated from the task.

 

UR / Lab

 

If you quote for labour with a UR (Unit Rate), you can enter the value for this item here. UR is the time taken (in hours) to install this material item. This UR value is automatically added to a quote when you select the item.

 

Lab Line Markup

 

If you add a percentage markup to labour, this can be entered here. This markup is automatically added to a quote when you select the item.

 

Task

 

 

 

Used to set a different Sell price which is applied to inventory items booked on a task, and which are included in part/final invoices generated from the task.

 

Invoice

 

Used to set a different Sell price which is applied to inventory items that are added directly to an invoice (not included on the task), such as a part or final task invoice or counter sale invoice.

 

A quicker way to edit Sell Price

The Sell Price set in the process above is shown in the Manage > Inventory views, (e.g. when you search for the item in inventory).

If the inventory item is set to use Sell pricingyou can edit the sell price directly within the inventory list.

If the inventory item is set to use Cost + Markup or Calculated Cost Type + Markup, the sell price will be greyed out in the inventory list. In this case, you will need to edit the Cost (ex) or Calculated Cost (ex) fields in order to update the sell price.