COGS Recalculation

In PrismERP, COGS Recalculation updates the cost of goods sold for products whenever stock transactions are modified. The calculation uses the costing method selected during system setup, such as FIFO, LIFO, or Weighted Average. It applies to all stock movements, including purchases, sales, stock issues, transfers, and adjustments.

Whenever any stock transaction changes, for example, if a purchase price is corrected, a stock quantity is adjusted, or a transaction is deleted, PrismERP recalculates the cost for the affected products. This ensures that the quantities, rates, and values recorded for each product match the selected costing method.

For example, a product may be received in multiple batches. Ten units could have been purchased at 100 BDT each, and five more units later at 110 BDT each. If some units are sold, the cost assigned to the sold units depends on the costing method. Using FIFO, the first units sold are valued at the oldest stock price. LIFO uses the most recent stock first. Weighted Average calculates a cost based on the average of all units. If a purchase price or stock quantity changes, COGS Recalculation updates the cost of both sold and remaining stock automatically.

The recalculated costs are reflected in the Product Master, Stock Ledger, and Inventory Valuation. All stock transactions, adjustments, or deletions trigger recalculation. The system updates quantities, rates, and values for the affected products to reflect the changes accurately according to the selected costing method. Users do not perform this calculation manually.