Cost price in Bimp: how it is formed and which calculation methods exist
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Cost price in Bimp is the purchase price plus additional costs (plus payroll costs in production). Write-off follows the FIFO method if batch accounting is on, or the weighted average cost if there are no batches. This article explains what the cost price of a product, finished goods and a service consists of.
What cost price consists of
The cost price of one unit of goods in Bimp equals the purchase price plus additional costs (for production, also payroll costs). You decide which costs to include: for example, delivery of purchased goods can be added to its cost or written off as a period expense. All articles in this section are listed on the “Cost price” page.
| Object | What the cost price is made of |
|---|---|
| Goods in stock | the purchase price from the “Goods receipt” document plus additional costs (logistics, customs duty) allocated per unit of goods — see Additional costs |
| Finished goods | materials according to the specification plus work and services included in the cost price during production |
| Service | costs accumulated on the work order or the Customer order — see Cost accumulation |
Which cost write-off methods exist
Bimp uses one of two methods depending on whether batch accounting is on:
| Method | When it applies | How it calculates |
|---|---|---|
| Weighted average | batch accounting is off | the average price of all stock of the product in the warehouse |
| FIFO (first in, first out) | batch accounting is on | goods are written off at the price of the earliest receipts |
Batch accounting is turned on in the company settings: Company settings → Accounting settings, the “Track goods by batches” switch — see Accounting settings. To track the profitability of each delivery accurately, batch accounting with FIFO is more convenient.
How costs get into the cost price
Additional costs are included in the cost price as follows:
- Purchase costs (delivery, customs duty) added to a goods receipt are allocated proportionally to the units of goods — see Additional costs on a goods receipt.
- Sales costs (delivery to the customer, carrier services) are added to the cost price of a specific sale with the “Additional costs” document — see Additional costs.
- Order costs (materials, contractors, direct costs) are accumulated and move into the cost price at the time of sale — see Cost accumulation and Service cost.
- Indirect costs (workshop rent, electricity) are allocated to products with the “Cost allocation” document — see Cost allocation.
Special cases
- VAT. Whether tax is included in the cost price depends on the accounting setting — see Cost price without VAT.
- Errors in input data. If a goods receipt contained a mistake, the cost price in past sales is corrected by reposting — see Cost price recalculation.
- Importing balances. When you upload balances, enter the cost price — see Importing products.
How to check the cost price
Run the “Gross profit” report: it shows revenue, cost price and profit, see Gross profit. For unfinished orders and indirect costs, use “Accumulated cost” — see Accumulated cost.
FAQ
Which cost write-off method does Bimp use: FIFO or average?
It depends on your settings. If batch accounting is off, Bimp calculates the weighted average cost of the stock. If "Track goods by batches" is on, it writes off using FIFO.
What should I enter when importing opening balances: cost price or selling price?
Cost price (the purchase price): financial reports are built on it. See the article about importing products.
Is VAT included in the cost price?
The "Cost of goods includes VAT" setting in the accounting settings controls this. To collect VAT separately as input VAT, turn it off.
Where can I see the cost price of a sale?
In the "Gross profit" report: it shows the difference between revenue and cost price. Costs on unfinished orders are visible in "Accumulated cost".