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How is the cost of my stock worked out?

Stock is valued at weighted-average cost — the running average of what you have paid for it.

Purchases go into stock as batches, each recording what you actually paid, including any landed costs you attach to an import. Your stock is valued at weighted-average cost. Every purchase blends into a running average for that product, so the cost of a sale is that average at the moment you sell — not the price of one particular delivery. This is the method your reports, your profitability figures and your stock valuation all use, so they always agree with each other. Batches still matter. When you sell, the oldest stock is drawn first, so the batch recorded against the sale is the one that really left the shelf. That is what keeps batch history and expiry dates meaningful, and it is separate from how the amount is valued.

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