WorkGuru's stock control is a perpetual inventory, working on the first in, first out (FIFO) principle. What this means is that WorkGuru tracks the actual cost of your products landed on each purchase order. This is much more accurate than the average cost model and allows WorkGuru to track landed costs and cost of goods sold (COGS) much more accurately.
There is two approaches to tracking landed costs on a purchase order:
- On PO landed costs - When the supplier invoices you for additional costs on the same invoice as the items ordered. This is usually freight/shipping or surcharges.
- Off PO landed costs - When the costs incurred to land a product is charged on separate invoices. This may also mean different suppliers from the stock order.
In both approaches, the total value of the landed costs entered are attributed to the line items on the stock order by quantity and value.