Item-wise COGS Calculation

In PrismERP, Item-wise COGS is the method used to calculate the cost of goods sold for each product. Whenever stock is sold, issued, or used in production, PrismERP determines the cost of that stock based on the costing method selected during system setup, such as FIFO, LIFO, or Weighted Average.

For example, a product may be received in multiple batches. Ten units might have been purchased at 100 BDT each, and five more units later at 110 BDT each. When units are sold, PrismERP assigns the cost according to the selected method. Using FIFO, the first units sold are valued at the oldest stock price. LIFO takes the most recent stock first. Weighted Average calculates an average cost across all units.

Item-wise COGS affects the cost recorded in the Product Master, Stock Ledger, and Inventory Valuation. Every stock movement, including purchases, sales, issues, transfers, or adjustments, updates the cost according to the chosen method. Users do not interact with it directly, but the cost is applied automatically wherever stock quantities and values are recorded in PrismERP.