Cost Management & Pricing Configuration feature

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.

Location in Back Office

Navigation Path:
Back Office → Features → Product Management → Product Cost Configuration

cost

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)

Update Product Price and Cost – Configuration

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

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

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

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

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

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

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.

Benefits

  • Saves time
  • Avoids pricing mismatch
  • Ensures uniform pricing

Product Margin Configuration

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.

🔹 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.

🔹 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.

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

🔹 Round Off Option

If enabled:

  • Final price will be rounded automatically.

Example: ₹124.75 → ₹125

If disabled:

  • Exact calculated value will be saved.