⚠️ Warning: Cost averaging is only
recommended for advanced users. ⚠️
For information on regular inventory cost tracking, click below:
Cost Averaging enables you to track lot cost averages over time
This means the cost that displays on reports will be averaged out across lots rather than exact. The vast majority of small-to-medium businesses do not need to track average costs. But for experienced users whose accounting needs require averaging, Thrive Inventory by Shopventory does it automatically by flipping a switch!
Cost Averaging is only available for users on Professional plans and above. Learn more about upgrading your plan here.
NOTE: Some grandfathered Standard plans allow Cost Averaging. If you have questions about your current plan, please contact us!
Activate Cost Averaging
To enable Average Costs, simply go to the Settings section of Thrive Inventory and click on the Company Info tab. You'll find the toggle near the bottom of the page.
This will begin calculating the "Current average cost/unit" in the Lot History for your products in the Inventory section of Thrive Inventory starting on the next lot (after cost averaging was enabled).
This will also make it so that anytime a new lot of inventory begins selling, the current lot cost will be the average of all the previous lot costs.
This will only calculate lot averages going forward.
Any lots entered before cost averaging was activated must be sold out before averaging begins.
Changes made to costs of prior lots will not trigger a re-calculation of averages.
Lots that are 'Not Set' will be calculated at a cost of Zero. Use the "Set default cost on all lots without cost" task in the Advanced Settings section of Thrive Inventory to fill empty lots with the current Default Cost before proceeding.
The way lots with average cogs are calculated is:
Take any quantities remaining (not sold) in any previous lots
Combine with newly added quantities and cogs
Calculate average cogs
This feature requires careful attention to detail when entering updates and receiving inventory. It is only recommended for power users with experience in inventory management software.
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