Know which Item to Purchase and at what price

September 1, 2013
Magellanic Cloud

Soft Retail Accounting gives you the most direct method of ascertaining the purchase requirements of your retail business. It works in a simple way. At the time of defining your trade items in “Items and Prices Setup”, you mention “re-order level” and “target level” for each item.

Let’s say for a particular item, the “target level” is 10 and “re-order level” is 2. It means that when stock of this item will reach to 2, now this item will be included in the list of “short items” which you can see from Main>>Inventory/Stock Books.

The “Short Items” screen will display the list of all the items whose stock has reached to “re-order level”.

This list will also tell the “last purchase price” and “weighted average purchase price” of each listed item. It will make sure that you or your purchasing staff will make no mistake regarding the prices of required items at the time of purchase.

This “short items list” will also tell the quantity required to be purchased of each listed item.  The “required quantity” is calculated on the basis of “Target Level” which you had set for the item in the “Items and Prices Setup”.

Let’s say the “target level” for a particular item was 10 and the “re-order level” was 2. Now when stock of this item will drop to 2, then “Short Items” list will show the “required quantity” to be 8. Because when you will purchase 8 units, you will again acquire the target level which is 10.

In case any item is not intended for next time purchase, then you will write both “re-order level” and “target level” to be zero (0). In addition, you will check mark the “discontinued” column. An item which is marked as “discontinued” will not appear in purchase demand (short items) list.

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