FAQ: Prices & Last Cost
Quick answers to common questions about product pricing and cost tracking.
Frequently Asked Questions
Q: What happens to past invoices when I change a product's price?
A: Past invoices are not affected. When you change a product's sales price, only new sales documents (invoices, receipts) created after the change will use the new price. Existing documents keep their original prices, which is important for accurate accounting records.
Q: How does Usystems know the "last cost" of a product?
A: The last cost is updated automatically when you receive inventory from a purchase. When you confirm the receipt of a Cash Purchase or Purchase Order, Usystems records the cost price from that document as the product's last cost. If you receive the same product at different prices, the last cost always shows the most recent purchase price.
Q: Can I set different prices for the same product in different currencies?
A: Yes. If your business operates in multiple currencies, you can set a separate sales price for each currency. When a customer buys in their currency, the product uses the price set for that currency. Make sure you update prices in all relevant currencies if you want consistent margins across currencies.
Q: Does changing the cost price affect my profit on past sales?
A: No. Profit on past sales is determined by the prices at the time of sale. Changing the last cost (via new purchases) affects the reported cost of future sales and the calculation of future margins and profit, but it does not retroactively change profit on documents already created.
Q: What if I don't set a sales price for a product?
A: You must set a sales price before selling. When creating a sales invoice or receipt, Usystems will require a price. If no default price is set on the product, the system will ask you to enter one at sale time. It's best practice to set a price when you create the product to avoid delays during sales entry.
Q: Can I use a markup percentage instead of entering each price manually?
A: Yes. When you receive a purchase with a new cost, Usystems can automatically calculate a new sales price based on a markup percentage or fixed amount you choose. This syncs the price to the cost. You can also set a default markup in the product settings so it applies automatically when costs change.
Q: If my cost goes down, should I lower my selling price?
A: That's a business decision. Usystems doesn't force you to lower prices when costs drop. You can choose to keep the same price (improving your margin) or lower it to stay competitive. The sync function is optional—use it when it makes sense for your business.
Q: Why do I see both "sales price" and "last cost" on a report?
A: They serve different purposes. The sales price is what you charge customers; the last cost is what you paid for the product. The difference is your gross margin. Both are used in profitability and inventory reports to show you true margins, help you identify high and low-margin items, and support pricing decisions.
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