Updating Inventory Prices: How to Keep Your Records Accurate

Keeping track of inventory is essential for any business that sells physical products. Not only does it help you manage your stock levels, but it also allows you to track your profits and losses accurately. However, one crucial aspect of inventory management that is often overlooked is the need to update the purchase cost of inventory items. This is especially important if your purchase cost fluctuates frequently due to market conditions or other factors.

In this article, we will explore how you can configure Datamoto to automatically update the purchase cost of your inventory items when they are received through the purchase module.

Why Updating Inventory Prices Is Important

Before we dive into the details of how to update your inventory prices, let’s first understand why it’s essential to do so. When you purchase inventory items, you typically buy them at a certain cost. This cost is known as the purchase cost, and it includes the price you paid for the item, as well as any additional costs such as shipping or handling fees.

However, the purchase cost of your inventory items is not static. It can change based on several factors such as market conditions, inflation, and changes in your supplier’s pricing. Failing to update the purchase cost of your inventory items can lead to inaccurate records, which can result in mismanagement of your inventory levels, inaccurate profit and loss statements, and ultimately, financial losses.

How to Configure Datamoto to Update Inventory Prices

Datamoto is a powerful Inventory management system that allows you to keep track of your inventory levels and update your purchase costs easily. Here’s how you can configure it to automatically update the purchase cost of your inventory items:

Step 1: Click on Inventory

The first step is to click on the Inventory tab in your Datamoto account.

Step 2: Check the Checkbox

Scroll down to the bottom of the page and look for the checkbox that says, “Check this to update actual unit cost (purchase cost) of items automatically when you receive items through a purchase order.” Check this box to enable the automatic update of purchase costs.

Step 3: Caution

Keep in mind that once you enable this feature, returning items will not revert the purchase cost back to the original price. This means that you should be extra careful when selecting items to purchase and make sure that the purchase cost is accurate before finalizing any transactions.

Benefits of Updating Inventory Prices

By configuring Datamoto to automatically update the purchase cost of your inventory items, you can reap several benefits:

  1. Accurate Records: Your inventory records will be accurate, which means that you can make informed decisions about your stock levels, pricing, and other aspects of your business.
  2. Time-Saving: Automating the purchase cost update process saves you time and effort, allowing you to focus on other essential aspects of your business.
  3. Financial Benefits: By accurately tracking your inventory costs, you can optimize your pricing strategy, reduce waste, and increase your profits.

Conclusion

Updating the purchase cost of your inventory items is a crucial aspect of inventory management that should not be overlooked. With Datamoto, you can easily configure your system to automatically update purchase costs when items are received through the purchase module. By doing so, you can ensure accurate records, save time, and increase your profits. Remember, accuracy is key to successful inventory management!