Calculate the Cost of Your Shop Supply

In an ideal world, all workshop supplies would be billed with their actual cost price.

That way, the calculation would be as accurate as possible and automatically reflected in the sales report.

But what happens if you use an automatic percentage based on the labour or parts amount?

If You Maintain Your Inventory Values

Base your calculation on the portion used in the workshop supply percentage.

Inventory value of workshop supplies two years ago – last year's value.

Example: 13,000 (2017) – 7,000 (2018) = 5,000
If the value is negative, it means you’ve stocked more supplies, so your cost has decreased.
Example: Grease inventory went from 2 cans to 1.

Calculating the Cost Price of Workshop Supplies

Group all your workshop supply purchases from the previous year, either by General Ledger account or by categories (you should have one or more dedicated categories for this type of material).

Add or subtract the inventory value variation:
Example: Purchases of $17,000 with an inventory value decrease of $5,000 means a cost price of $22,000.

If not already done, create a Workshop supplies category.

To create a category, go to the left main menu and click on Inventory > Categories > +Add.

In the Infos tab, enter the following details:

• Code
• Name
• Type
• Tax rules
• Tax rules for purchases

Click Save.

Calculating the Selling Price of Workshop Supplies

Note: To generate the workshop supplies report, your category must be properly configured beforehand.

Run a report with the sales from your configured workshop supplies category. To do this, go to the left main menu and click on Inventory > Reports > Inventory.

In the related window, select the following fields:

• Category
• Date
• Location
• Currency

Click Send.

Calculating the Profit Margin on Workshop Supplies

To adjust the profit margin and additional margin, enter the appropriate values in the Infos tab of the category associated with workshop supplies. Adjust the margin and click Save.