Finance
Set your HPP cost method
Pick how product cost is computed — manual, average, FIFO or none — and keep every margin honest.
6 min read
Why HPP decides your margin
Supplier prices move: the same SKU restocked twice can have two buying prices. Sell 12 pieces and the modal depends on the method — FIFO counts the oldest stock first, average blends every restock into one moving cost, manual uses the capital price you typed, and none means zero (for services). Margin is sell price minus HPP, so without a method every profit figure downstream — laba rugi, stock value, dead-stock value — is fiction.
The four methods
One method per shop, not per product — every report stays comparable. Manual is the default: the capital price typed on the product or variant is snapshotted onto every order, no migration, no recalculation. Average maintains one moving cost per SKU on every restock — best for apparel, shoes and electronics. FIFO consumes the oldest cost layer first — best for F&B, drugs and cosmetics with expiry dates. None posts zero cost and skips the cost journal lines — for services with no inventory value.
Steps
Open Products and the HPP or inventory settings in the dashboard.
01
Fill the capital price (modal) on every product and variant — this is the manual cost and the fallback for every other method.
02
Pick the shop method: manual to start, average or FIFO when restock prices move often, none only for pure services.
03
Switching to average or FIFO recalculates from the earliest transaction, locks further switches until done, and past orders are not restated — reports note the cutover date.
04
Open the HPP history per product (price warehouse → HPP history): every cost jump must trace to one restock, purchase, order or stocktake row.
Tip: Switching methods changes last month’s margin figures. Consult your bookkeeper first if the numbers feed your tax filing.
Keep HPP honest
Never sell what the data says is not there: selling below zero invents cost and poisons the average and FIFO order, so keep the oversell guard on and treat every Insufficient stock refusal as the system protecting your books. When a stocktake count comes in above the system, fill the buy-price column — new found stock needs a real unit cost. And never edit a published inbound to fix HPP; correct it with a new movement dated and priced truthfully.
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