The costing method you choose determines how Store Manager calculates the cost of your stock items. Choose one of the three available methods as described below. These settings are global; therefore, all items will use the same costing method.
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Important If there are any transactions in the system, or any items in stock, the costing method settings are unavailable and cannot be changed. This prevents unclear reporting and comparisons for past and future periods. |
1.Go to the Settings> Inventory Settings> Inventory Options 
> Initial Settings tab.
2.Choose one of the Costing Method options:
oThe First In First Out option bases the cost of an inventory stock item on its original purchase cost. That is to say, a new cost on product received will not affect the cost of any old product still in stock.
This method assumes the first product received is the first used. FIFO gives the most accurate costing, especially if your product costs fluctuate significantly.
oThe Standard Cost option allows you to set a manual cost for each of your inventory stock items. The cost can be set in the stock item's General tab, or during receive, and the ability to change it is controlled by security privileges.
This method would be used if a restaurant had a set price for all items, through the signing of a contract with their vendors. It is assumed the price remains the same throughout the contract period, and therefore a cost per-product does not need to be entered when performing a receive.
oThe Weighted Average Cost option averages costs for the current stock, based on the quantity received at each cost. For example, if you have in stock 30 bags of buffalo sauce that cost $5 each= $150, and 50 bags that cost $4 each = $200, the weighted average cost for a bag of buffalo sauce would be ($150 + $200)/80 = $4.38.
This method is used if the restaurant does not need to see the actual cost of each item, but is more interested in seeing an average price the item over a longer time frame.
Inventory Setup SpeedStart Tutorial 
•Inventory Setup Tutorial Home
•Step 1: Add a Year of Periods
•Step 2: Import Stock Items from Menu
•Step 3: Add Global Unit of Measure Conversions
•Step 4: Add Supplier Information
•Step 5: Enter General Stock Item Information
•Step 6: Add Custom Unit Conversion
•Step 7: Enter Stock Item Count Units and Locations
•Step 8: Assign Stock Items to a Supplier
•Step 9: Set General Inventory Options
•Step 10: Set Purchase Order Options
•Step 12: Set End of Day Options
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Step 13: Set Costing Method
