Item Pricing (Selling Price, Purchase Price)

Item Pricing (Selling Price, Purchase Price)

Proper pricing setup is crucial for accurate invoicing, profit calculation, and inventory valuation in EquiBillBook. This guide explains how to configure selling prices and purchase prices for your items.

Understanding Item Pricing

Selling Price: The price at which you sell the item to customers. This is the default price used when creating sales invoices.

Purchase Price: The cost price at which you purchase the item from suppliers. This is used for inventory valuation, profit calculation, and purchase bills.

Setting Prices When Creating Items

When creating a new item:

1. Navigate to Items → Create New Item
2. Fill in basic item information
3. In the Pricing section, enter:
   • Selling Price: Your default selling price
   • Purchase Price: Your cost price
4. Save the item

Editing Item Prices

To update prices for existing items:

1. Go to Items → Items List
2. Find and edit the item
3. Update the selling price and/or purchase price
4. Click "Update" or "Save"

Multiple Selling Prices

EquiBillBook supports different selling prices for the same item:

Price Lists

• Create different price lists (e.g., "Retail", "Wholesale", "VIP Customers")
• Assign different prices to items in each price list
• Link price lists to customers or customer groups
• When creating invoices, the system uses the appropriate price list

Setting Up Price Lists

1. Navigate to Settings → Item Settings → Price Lists
2. Click "Create Price List"
3. Enter the price list name (e.g., "Wholesale Pricing")
4. Add items and set prices for each
5. Assign the price list to customers or groups

Price Updates in Transactions

When creating sales invoices or purchase bills:

• The system automatically populates prices from item settings
• You can manually override prices on individual transactions if needed
• Changed prices in transactions don't affect the item's default prices

Currency Considerations

If using multiple currencies:

• Set base currency prices for items
• Currency conversion is applied during transactions
• Exchange rates are used to calculate prices in other currencies

Price with Tax vs. Price without Tax

Configure how prices are displayed:

• Inclusive of Tax: Price includes tax (tax is calculated backwards from the price)
• Exclusive of Tax: Tax is added on top of the price
• Set this preference in Settings → Sales Settings → Price Display

Bulk Price Updates

To update prices for multiple items:

Method 1: Bulk Edit

1. Go to Items → Items List
2. Select multiple items using checkboxes
3. Click "Bulk Actions" → "Update Prices"
4. Choose to update selling price, purchase price, or both
5. Enter percentage increase/decrease or fixed amount
6. Apply changes

Method 2: Import/Export

1. Export items to Excel/CSV
2. Update prices in the spreadsheet
3. Import the updated file back into the system

Price Change History

EquiBillBook may track price change history (if enabled):

• View when prices were last updated
• Track price changes over time
• Use this data for pricing analysis and audits

Best Practices

• Keep Prices Updated: Regularly review and update prices to reflect current costs and market rates
• Document Price Changes: Maintain records of why prices changed
• Use Price Lists: Set up price lists for different customer segments
• Check Profit Margins: Ensure selling prices provide adequate profit margins
• Regular Audits: Periodically verify that transaction prices match your pricing strategy

Profit Calculation

With selling and purchase prices set:

• Gross Profit = Selling Price - Purchase Price
• Profit Margin = (Gross Profit / Selling Price) × 100
• View profit reports in Reports → Sales Reports → Profit Reports

Troubleshooting

Price Not Showing in Invoice: Ensure the item has a selling price set and the price list is correctly assigned.

Wrong Price Applied: Check customer's assigned price list and verify item prices in that list.

Can't Update Price: Verify you have permission to edit item prices in your user role settings.

Related Topics

• Creating Items
• Item Tax Configuration
• Customer Price Lists
• Sales Invoice Creation