💰 Cost Management & Pricing Configuration Guide

The Cost Section helps you manage product cost, pricing, tax configuration, and margin calculation accurately. These features ensure correct billing, profit tracking, and price consistency.

1️⃣ Product Tax Setup

📌 Purpose

Configure tax rules for products (Inclusive or Exclusive GST).

🔧 Features

  • Set Tax as Inclusive or Exclusive
  • Configure GST %
  • Apply tax to:
    • Product
    • Order
    • Voucher

🛠 Steps to Configure

  1. Go to Features → Cost
  2. Click Product Tax
  3. Choose:
    • Tax Type (Inclusive / Exclusive)
    • GST Percentage
  4. Click Save

✅ Example

If GST = 18%:

  • Exclusive Tax
    Cost: ₹100
    Final Price: ₹100 + 18% GST = ₹118

  • Inclusive Tax
    Final Price: ₹118 (GST already included)

2️⃣ Update Product Price and Cost – Configuration Guide

This section allows you to automatically update product Selling Price, Cost, and Tax Class based on the latest Sales or Purchase transactions.

1️⃣ Update Product Price from Last Sales Voucher

Description:
Automatically update the product's selling price using the price entered in the most recent Sales Voucher.

When to Enable:

  • When selling prices change frequently
  • When you want the latest billed price to become the default selling price

2️⃣ Exclude Discounts While Updating Product Price

Description:
If enabled, the system will update only the Unit Price, excluding any discounts applied in the Sales Voucher.

Recommended For:

  • Businesses that give temporary discounts
  • Stores that do not want discount values to affect the base selling price

3️⃣ Update Product Cost from Last PO / PI / RC

Description:
Automatically update product cost based on the price entered in the latest:

  • PO (Purchase Order)
  • PI (Purchase Invoice)
  • RC (Receipt Note)

Best For:

  • Businesses where supplier cost changes frequently
  • Maintaining accurate profit margins

4️⃣ Exclude Discounts While Updating Product Cost

Description:
If enabled, only the Unit Cost will be updated. Any discounts applied in the purchase document will not affect the product cost.

Recommended For:

  • Businesses receiving bulk purchase discounts
  • Maintaining a stable base cost

5️⃣ Update Product Tax Class from Last PO / PI / RC

Description:
Automatically update the product's tax class based on the most recent Purchase document.

Useful When:

  • Tax structure changes
  • Different suppliers apply different tax classes

⚙️ How to Configure

  1. Go to Features → Cost
  2. Open Update Product Price and Cost
  3. Enable the required toggle options
  4. Click Save

✅ Pro Recommendation

✔ Enable Cost Update for accurate margin calculation
✔ Exclude discounts if discounts are temporary
✔ Review tax class updates carefully before enabling

This feature ensures automatic price consistency, cost accuracy, and proper tax handling across your inventory system.

✅ Best For

Businesses where supplier prices change frequently.

3️⃣ Update Variant Price Same as Parent Product

📌 Purpose

Automatically sync variant cost and price with the parent product.

🔧 Example

Parent Product: T-Shirt
Variants:

  • Red (M)
  • Red (L)
  • Blue (M)

When enabled: All variants will use the same cost and selling price as the parent product.

🛠 Steps to Enable

  1. Go to Features → Cost
  2. Turn ON the toggle
  3. Click Save

🎯 Benefits

  • Saves time
  • Avoids pricing mismatch
  • Ensures uniform pricing

📊 Product Margin Configuration – Complete Guide

The Product Margin Configuration feature allows you to automatically calculate Selling Price and MRP based on Cost using predefined margin rules.

This ensures consistent pricing, accurate profit calculation, and reduced manual work.

🔹 1️⃣ Calculate Margin Based On

This option defines the base value used for margin calculation.

Available Option:

  • Cost

When "Cost" is selected, the system calculates Selling Price and MRP based on the product cost.

🔹 2️⃣ Default Product Margin Setup

Base (Product Margin Configuration)

Defines the base value used for margin calculation.

Example:

  • Base = Cost
    Margin calculations will be applied on product cost.

🔹 3️⃣ Calculation Table Explained

Calculation For Operation Value Round Off
Price Multiply % Yes/No
MRP Multiply % Yes/No

🧮 How It Works

If:

  • Cost = ₹100
  • Operation = Multiply
  • Value = 1.25

Then:

Selling Price = 100 × 1.25
Selling Price = ₹125

📌 Example with Percentage Logic

If you want 25% margin:

Instead of entering 25, enter:

1.25 (because 100 + 25% = 1.25 multiplier)

Formula used:

Selling Price = Cost × Multiplier

🔹 4️⃣ Round Off Option

If enabled:

  • Final price will be rounded automatically.

Example: ₹124.75 → ₹125

If disabled:

  • Exact calculated value will be saved.

⚙️ Steps to Configure Product Margin

  1. Go to Features → Cost
  2. Open Product Margin Configuration
  3. Select Base = Cost
  4. Enter:
    • Operation (Multiply)
    • Value (Example: 1.20 for 20% margin)
  5. Enable Round Off (if required)
  6. Click Save

✅ Recommended Settings

Business Type Suggested Margin
Retail Store 20% – 40%
Wholesale 5% – 15%
Garments 30% – 60%
Supermarket 10% – 25%

🚀 Benefits

✔ Automatic selling price calculation
✔ Consistent pricing across products
✔ Accurate profit tracking
✔ Saves manual calculation time

Product Margin Configuration helps maintain structured pricing and ensures better profitability management. Cost Section ensures accurate pricing, proper tax handling, and better profit control.