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Calculating inventory value

Explanation of how inventory value is calculated in Shoporama - cost price, FIFO and stock adjustments.

Reading time: approx. 1-2 minutes
Shopejer

When you stock items in Shoporama, you have the option to set a cost price. If you set a cost price for the product, then Shoporama automatically retrieves this cost price.
If a cost price is set, then Shoporama calculates the value of your inventory.

Here are some questions and answers for that calculation.

Is the inventory value including or excluding VAT?

Shoporama calculates the value excluding VAT.

What about the items that are stocked at no cost?

They are not included in the inventory value.

I just added items to my inventory, but the value on the Shoporama front page hasn't changed.

Shoporama calculates your inventory value overnight. So what you're stocking right now, you won't see in that number until the next day. This is to avoid unnecessary load on the servers so that your shop performs faster during the day.

I have changed the cost price of an item. So now I have items in stock with two different cost prices. How does Shoporama calculate the value?

Shoporama takes the average of the two prices. If you have 10 items in stock at a cost price of DKK 80, you have a stock value of 800. If you then stock 5 items at a cost price of DKK 70, then your stock has cost an additional DKK 350 and has a value of DKK 1150. But Shoporama will calculate the stock value to be the average of 70,- and 80,- so 75,-. Since you have 15 items in stock, Shoporama will set your inventory value to 15 * 75,- = 1125,- DKK.