Stock Main: Cost and Selling Prices |
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Stock Items Master File: Cost and Selling Prices Tab
Go to: Stock Items > Main Form and select the Cost and Selling Prices tab
The Cost and Selling Prices Tab governs the structural matrix of your inventory asset valuation, cost attribution models, and active selling price tiers. Because Smart-IT operates on a real-time ledger, the configuration selections made here directly determine your gross profit reporting, closing stock values, and tax liabilities on your balance sheet.
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How to determine the selling price
How to add different selling units
Fields in the Cost and Selling Tab - Explanations.
Cost of Sales Valuation Method:
This setting determines how the Cost of Sales and Stock Valuation are calculated.
Available Valuation Methods
1. Average Purchase Cost (Recommended) – Uses the average purchase cost of an item.
2. Supplier List If No Average Cost – Uses the supplier list price only if no average cost exists..
3. Last Purchase Cost – Uses the most recent purchase price of the item.
4. Supplier List – Always uses the supplier's listed price, regardless of past purchases.
5. If SOH = 0, Use Supplier List; Otherwise, Use Average Cost – Uses the supplier's list price when stock on hand (SOH) is zero; otherwise, it defaults to the average purchase cost.
Recommendation
For most businesses: Recommended Option is Average Purchase Cost
The other valuation methods are mainly used by businesses that:
•Do not process GRNs
•Use simplified stock control
•Rely heavily on supplier pricing
Default Valuation Method
To set the default valuation method for new stock items. Go to: Stock > Stock Options.
Important Note:
For insights into how using the Supplier List Price instead of Average Cost impacts your stock values and income statement, refer to Stock Value Reconciliation.
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Pricing Method
The Pricing Method determines which cost value Smart-IT uses when calculating selling prices.
Available Pricing Methods
1. Average Purchase Cost – Uses the average purchase price as the pricing basis.
2. Last Purchase Cost – Uses the latest purchase price.
3. Supplier List + Overhead % – Uses the Supplier’s List Price PLUS Overhead Percentage.
•Example: If the supplier's list price is $10 and the overhead percentage is 10%, the adjusted cost becomes $11. If the markup is 20%, the final selling price is $13.20 ($11 + 20%).
4. If SOH = 0, Use Supplier List; Otherwise, Use Average Cost – Uses the supplier’s price when stock on hand is zero; otherwise, it defaults to the average cost.
5. If Low Stock, Use Supplier List; Otherwise, Use Average Cost – When stock falls below a set level, the supplier list price is used. You can set this threshold in Stock Options > Pricing tab 'Low stock Level for Pricing'.
6. Days Since Date Bought ≥ X Days, Use Supplier List + Overhead %; Otherwise, Use Average Cost – If an item has been in stock for more than a specified number of days, pricing switches to the supplier’s list price plus overhead.
• If selected then the field Stock Age For Pricing will be enabled and you can type in the number of days you want to use.
•Example: If Stock Age for Pricing = 80 days. Items older than 80 days use Supplier List Pricing. Newer items use Average Cost.
Default Pricing Method
To set the default pricing method for new stock items:
Go to: Stock > Stock Options > New Item Defaults
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Special Pricing
Purpose
Special Pricing allows you to:
•Set promotional pricing
•Define date ranges
•Create temporary discounts
•Run marketing campaigns
Displaying Discounts on Invoices
Instead of printing the special price directly, enable:
'Special as line discount %' (in Price Rounding Options)
This:
•Displays the normal selling price
•Shows the special price as a percentage discount
Selling Below Cost
Items on special may be sold below cost.
If this happens:
The “Allow Sell Item Below Cost” setting (Invoice Options) is ignored.
Bulk updates
Special prices can be updated in bulk under Stock > Extended Item Lookup > Change Selected 2 tab
Visual Indicators
Items with special pricing are highlighted in Quotes, Sales Orders, Invoices, and Job Cards for easy identification.
Filtering & Reporting
•Filter special price items in the Print Labels form.
•View a complete list of items on special in the Extended Item Lookup.
Restriction On Specials
You can set the special to be limited to On Account, Cash Sales or None.
•Shown in the Extended Lookup form.
•You can bulk change it in Stock > Extended Item Lookup > Change Selected 2 tab
This ensures easy management and visibility of promotional pricing across your system.
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Special Level 2 Pricing
The Special Level 2 feature allows you to apply an additional discount based on Special 1 pricing.
Example:
•Suppose an item originally sells for R344.90.
•You apply a special price of R300 (Special 1).
•For an additional Black Friday discount of, for example, 10%, Special Level 2 will set the price to R270 (R300 - 10%).
Key Features:
•If no Special 1 price exists, Price 10 will be used instead.
•Prices can be
•Imported using the Excel Import Module.
•A full list of special-priced items is available in the Extended Item Lookup.
This feature is ideal for:
•Black Friday promotions
•Clearance sales
•Layered discount campaigns
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While Stock Lasts
Purpose: Automatically removes promotional pricing when stock is depleted.
Setup
1. Go to: Stock > Cost & Selling Prices
2. Enable "While Stock Lasts" checkbox (bottom right-corner).
⛔ Auto-Clear Condition
The special price is automatically removed when:
•Available Quantity reaches zero, either through:
•Invoicing
•Goods Received Voucher (GRV) processing
Bulk Setup
To apply this in bulk:
•Navigate to Extended Stock Lookup > Change Selected 2 tab
•Use the bulk-edit tools to mark multiple items as “While Stock Lasts”
Related Features
See also:
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Show On Invoice
Purpose
Show On Invoice checkbox determines whether an item's unit is visible in the Invoice Item Lookup form (used in invoices, quotes, and similar forms).
How it Works:
•You must set this option for each unit individually in the Stock Main Form > Cost & Selling tab.
•If no unit is marked as Show On Invoice, the item will not appear in the invoice lookup form.
•However, you can still sell the item manually by entering its stock code — you just won’t be able to search or browse for it.
The Item Lookup form also displays the Show On Invoice status for each item.
Set Defaults for New Items
To automatically enable Show On Invoice for new stock items:
•Go to Stock > Stock Options and select the New Item Defaults tab.
Bulk Updating Options
Bulk update the Show On Invoice setting from:
•Option 1: Company > Data Health & Maintenance (make all units visible/invisible), or
•Option 2: Stock > Extended Lookup
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