You can view the cost of an item in Cloud MT in the ‘Cloud POS Details’ area of the item record:

This article explains how this value is calculated for your Ecommerce site, for both matrix & non-matrix products. 

How is cost calculated for the Ecommerce platform?

This decision tree will help you to understand how the cost will be calculated for a particular item:

Here is an explanation of the terms used:

Quantity on Hand: This is the ‘Qty’ value that you see in the Inventory table on an item record. It represents the total quantity of the item in this store, regardless of any items that may be committed.

Average Weighted Cost: This is an average cost that also considers the quantity at a location.

Non-weighted cost: This is an average cost that does not consider the quantity at a location.

Here is an example.

The Average Weighted Cost for this item would consider the quantities at each location, so the calculation would be:

(Qty at Location A x Cost at Location A) + (Qty at Location B x Cost at Location B) / Total Qty at A & B

(1 x 70.00) + (2 x 72.00) / 3

= 71.33

A non-weighted cost would not consider the quantities at each location, so the calculation would be:

(Cost at Location A) + (Cost at Location B) / Number of Locations

(70) + (72) / 2

= 71

Last Received: You can see the date that an item was last received in the Inventory table on an item record:

Worked Examples

Matrix Items

Example A: There is no positive ‘Qty on Hand’, and there has never been stock of this item.

Calculation: The cost in Cloud MT will be a non-weighted average of the costs across all sizes and all stores in the Back Office.

(Average cost of 500ml bottle across stores) + (Average cost of 750ml bottle across stores) + (Average cost of 1L bottle across stores) / 3
(2) + (3.65) + (4.80) / 3
= 3.48

Example B: There is a positive ‘Qty on Hand’ at one or more stores.

Calculation: The cost in Cloud MT will be the Average Weighted Cost for all sizes and stores where there is a positive ‘Quantity on Hand’.

(Cost of 500ml bottle at Penrith x 1) + (Cost of 750ml bottle at Penrith x 2) + (Cost of 1L bottle at Penrith x 1) / Total Qty of bottles
(2.00 x 1) + (3.50 x 2) + (5.00 x 1) / 4
= 3.50

Example C: There is no positive ‘Qty on Hand’, but there has been some stock in the past.

Calculation: The cost in Cloud MT will be a non-weighted average of any sizes and stores that have received stock in the past.

(Cost of 500ml at Lancaster) + (Cost of 750ml at Penrith) + (Cost of 1L at London) / Total number of values used
= 2.00 + 3.50 + 5.00 / 3
= 3.50

Non-matrix items

Example D: There is no positive ‘Qty on Hand’, and there has never been stock of this item.

Calculation: The cost in Cloud MT will be a non-weighted average of the costs across all stores in the Back Office.

(Cost at Bath) + (Cost at Sheffield) + (Cost at Preston) + (Cost at Liverpool) + (Cost at York) / Number of stores
= 89.50 + 89.50 + 89.50 + 89.50 + 89.50 / 5
= 89.50

Example E: There is a positive ‘Qty on Hand’ at one or more stores.

Calculation: The cost in Cloud MT will be the Average Weighted Cost for all stores where there is a positive ‘Quantity on Hand’.

(Cost at Bath x Qty at Bath) + (Cost at Liverpool x Qty at Liverpool) / Total Qty at Bath & Liverpool
= (89.50 x 3) + (89.00 x 2) / 5
= 89.30

Example F: There is no positive ‘Qty on Hand’, but there has been some stock in the past.

Calculation: The cost in Cloud MT will be a non-weighted average across all stores that have received stock in the past.

(Cost at Bath) + (Cost at Preston) + (Cost at York) / Total number of stores used
= 89.50 + 89.00 + 90.20 / 3
= 89.57