How Bizwazi calculates inventory report values

Inventory reports use your saved stock quantities, cost prices, and selling prices to estimate business value. These figures are useful for decision-making, but they depend on the accuracy of the item details you entered.

Cost price

• Cost price means how much it costs your business to buy or obtain one unit of an item.
• If you buy one bottle for KSh 300 and sell it for KSh 500, the cost price is KSh 300.
• Bizwazi uses cost price to estimate the value of stock on hand, lost stock, damaged stock, dead stock, and low-stock risk.

Selling price

• Selling price means how much you normally charge the customer for one unit of the item.
• If you buy a product for KSh 300 and sell it for KSh 500, the selling price is KSh 500.
• Bizwazi can use selling price to estimate potential sales value and value of items sold.

Stock on hand value

• Stock on hand is the estimated value of inventory currently available.
• The usual calculation is current quantity multiplied by cost price.
• This shows what the stock is worth to the business, not just what you might sell it for.

Sales value

• Sales value is usually based on selling price and inventory-linked sales activity.
• It helps show the value of items sold during the selected period.
• A high sales value means an item may be important to your business revenue.

Missing or incorrect cost price

• If an item has no cost price, some report values may show as KSh 0.00 or lower than expected.
• If the cost price is wrong, stock value and loss value may also be wrong.
• To fix this, edit the inventory item and enter the correct cost price.

Example

• If Extra Virgin Olive Oil has 2 units in stock and each unit costs KSh 2,500, the stock value at cost is KSh 5,000.
• If the same item sells for KSh 3,500 each, the potential sales value is KSh 7,000.