Sell Conversions

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Sell Conversions

To calculate the Sell Conversion, divide the unit by which you store the selected item in Inventory by the unit by which you sell the item in Sales. This is the number to enter in the Sell Conv box on the Qty / Price Info tab of the IN Stock window.

Sell Conversion = IN Unit / Sales Unit

Example: Sell Conversions
In Sales, you sell cases of soda cans by the can. Each case consists of 12 cans. The Sell Conversion factor, therefore, is .08333 (1 case divided by 12 cans). The Sell Conversion factors are then used to calculate cost (the amount that you paid for each can) according to the following formulas: Sales Cost Per Unit = IN Cost Per Unit (x) Sell Conversion factor The Sales cost per unit is $.0833 per can ($1.00 per case multiplied by .08333). This cost is posted to the Cost of Goods Sold account.. The formulas listed above are also used to calculate price (the amount for which you will sell each can). For instance, if you sell each can for $.50 in Sales, the Inventory price per unit is $6.00024 per case ($.50 per can multiplied by .0833).

Example: Sell Conversions

In Sales, you sell cases of soda cans by the can. Each case consists of 12 cans. The Sell Conversion factor, therefore, is .08333 (1 case divided by 12 cans).

The Sell Conversion factors are then used to calculate cost (the amount that you paid for each can) according to the following formulas:

Sales Cost Per Unit = IN Cost Per Unit (x) Sell Conversion factor

The Sales cost per unit is $.0833 per can ($1.00 per case multiplied by .08333). This cost is posted to the Cost of Goods Sold account..

The formulas listed above are also used to calculate price (the amount for which you will sell each can). For instance, if you sell each can for $.50 in Sales, the Inventory price per unit is $6.00024 per case ($.50 per can multiplied by .0833).

You cannot use Sell Conversions for serialized or lot numbered stock items.

Published date: 12/21/2020