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#INITIAL SETTING ADJUSTMENT PROGRAM HOW TO#
#INITIAL SETTING ADJUSTMENT PROGRAM MAC#

Knowing the correct Profit Margin of each item lets you know how much each item actually contributes to your business and prioritizes which items you should be focusing on. Profit Margin tells you the profitability of your items and can provide important data for your business. Correct Profit Margin ReportingĬost tracking is essential in calculating the correct profit margin of an item.

#INITIAL SETTING ADJUSTMENT PROGRAM MAC#

Setting up the correct Initial Cost will give you the most accurate MAC from the start of your QuickBooks Commerce time. In QuickBooks Commerce, the MAC of a variant started with its Initial Cost and is continuously recalculated with each stock movement on the variant. Moving Average Cost is a fundamental concept for cost tracking in QuickBooks Commerce - it determines the true cost of a product over its lifetime. Maintain the correct MAC (Moving Average Cost)

Let’s take a look at why setting up the correct Initial Cost is a well-worth investment of your time: 1. It gives you a better picture of your business by providing accurate cost tracking and better profit accounting. However, having the correct Initial Cost is extremely important for your business. If you have many products, setting up Initial Cost might seem like an unnecessary additional task. Why should I care about the Initial Cost? However, it’s still possible to fix! See " What if my Initial Cost is incorrect?" for more information. Once a variant’s stock has moved, and its MAC has changed, you can no longer change its initial cost. This is because Moving Average Cost (MAC) is continuously recalculated with each stock movement mentioned above.

Completing a Production Order for a Manufactured Product.

Receiving stock from your supplier via a Purchase order.

Fulfilling returns from your customer via a Sales Order.

Fulfilling stock to your customer via Sales Order.

Initial Cost cannot be changed after any transaction that creates stock movement has been performed on a variant.

#INITIAL SETTING ADJUSTMENT PROGRAM HOW TO#

There are many ways to set up Initial Cost, covered under the “ How to setup Initial Cost” section below. Once you have imported your products into QuickBooks Commerce, you must promptly set up your Initial Cost to ensure accurate calculations. The importance of Initial Cost will be explored more later in this article under “ Why should I care about Initial Cost”? Initial Cost is an integral part of your business. The cost of acquiring these products into your inventory is referred to as the Initial Cost. Most products imported/created in QuickBooks Commerce had a history of being acquired, either by purchasing the item from your supplier or manufacturing them. Initial Cost is the average cost of acquiring your existing stock on hand, at the point of importing your products to QuickBooks Commerce.

How can I set up Initial Cost in QuickBooks Commerce?.

Why should I care about the Initial Cost?.

In this article, we will be covering the Initial Cost and why it is important for your business through the following topics: Initial Cost is fundamental in determining many important aspects of your business health, such as Cost tracking, Profit Margin reporting, and getting the Total Stock Value.