How does Planufac calculate Profit/Loss

When a sale is recorded in Planufac the cost of the goods sold is stored along with the sales information.

This is done using FIFO (First in First Out). When a product has batches, Planufac will use the items with the shortest expiry date first. When there are no batches, Planufac will use the oldest entries in the database first.

The only exception to this is when an item is oversold. In this case Planufac will use the MAC (Moving Average Cost) as it doesn't know what the oversold items actually cost. Similarly it will create a dummy batch number & expiry for the products.

Example

1. You purchase 100 units of a product at £1
2. You then purchase another 100 units of the same product at £2

You now have 200 units of this product

The total value of the inventory will be £300

The MAC will be £1.50

1. The first 100 units sold would be stored with a cost of £1
2. The next 100 units would be stored with a cost of £2
3. You then sell a further 10 units (oversold), which would be stored with the MAC (£1.50)

If all 210 units above were sold for £3

• The profit on the first 100 would be £200
• The profit on the second 100 would be £100
• The profit on the oversold 10 be £150

Your gross profit would be £450