⚠️ 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 is displayed 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 does it automatically by flipping a switch!
Cost Averaging is included with Standard plans and above.
Chat with us for a free 14-day trial to see if the Standard Plan is right for you.
Activate Cost Averaging
The Average Costs toggle can be found on the Company Info page as shown here:
As noted on the page, you will need a Customer Care Representative to enable this for you.
Once enabled, we will begin calculating the "Current average cost/unit" in the Lot History for your products, 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.
How lots with average cogs are calculated:
Take any quantities remaining (not sold) in any previous lots
Combine with newly added quantities and cogs
Calculate average cogs
Things to Note:
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 the 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 on the Advanced page of Thrive to fill empty lots with the current Default Cost before proceeding.
Warning!
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.