Inventory Tracking Wholesale Supplier Purchase

[TheLastStopClub]

We operate a small concession stand for our charity fundraising and use SquarePOS.   Our inventory comes from a wholesale club.

Example 1: Package of 35 soft drinks costs us $15.98.  

Example 2: Variety package 4 types of chips in a box of 30 for $18.48.

How do we get our purchase orders to line up for tracking per item and its cost?

Thank you!

[Candlestore]

@TheLastStopClub ;

As I see this is your 1st post let me welcome you to the Square forum.

Now I see you posted this in Square for Retail, so is this the paid version with the monthly fee or the free version of Square for Retail you are using?  Also you mention that you are using SquarePOS which does not handle everything Square for retail does.

Here is a comparison of the 3 Square POS type systems for Retail, link below:

5980-compare-square-for-retail-and-square-point-of-sale 

As you can see by the charts in the link only Square for Retail subscrition can use Purchase orders.

Here is more about Purchase Orders with Square:  6240-purchase-order-management 

Here is an important not when adding Fees such as shipping when recieving a Purchase Order:

• When you receive a purchase order, you can enter shipping and handling or other costs by clicking Add Fee. Additional costs will be included in your Cost of Goods Sold report. Keep in mind, adding additional fees will not affect the unit cost of the individual items in the purchase order.

Because of these issues I created my own spreadsheet that calculates the ACTUAL cost I incure for merchandise with shipping and any other fees to calculate the actual cost of each item.  

Example:

   Wholesaler charges $2.50 per Glass jar when ordered by a Pallet quantity (1440 Jars)

                        Plus shipping of $150.00

                        Plus a charge of $8.00 per pallet they ship.

So 1440 * 2.50 = $3600 

      Now add the $158.00 for shipping and 1 pallet.  

      I see this on the Invoice of the supplier. So total ost of 1440 jars is $3758.00

Each Jar actually costs me 3758/1440 = 2.60416667 or 2.61 is what I enter into cost of item in Square.... Square would only put in a cost of the goods at $2.50  or a difference of 10 or 11 cents based on rounding.  This gives me a True cost of each item.

[TheLastStopClub]

Hi Candlestore,

Thank you for your detailed reply.

Yes you are right we are using Square for Retail.

To simplify your response.  Because of square rounding,  I should track my cost of goods in an external place instead of using this feature?

[Candlestore]

@TheLastStopClub;

I would use an Accounting package.  Some let you just put in the cost you pay for item like Square.  But then others Have another line that is for Shipping costs from Suppliers which also gets factored into COGS.  These are all grey areas and some miss this for costs which can add up over time depending how often you pay shipping costs.  This is best left to ask an accountant in you area to see what is and what is not allowed for you. 

I factor in the shipping costs for Square, but in my Quickbooks the cost of Shipping is in its own categories (From Suppliers and to Customers) which my accountant sorts out.  Those are the simplified terms I use but my accountant has codes and some other account names for these. 

Since Square is more for CC Processing their COGS are more general and not detailed since they are not an accounting package to get the best Overall picture of a business. 

To get more details and more control of rounding yes I would recommend something outside of Square for Accounting of COGS sold.  And use Squares Cost of an Item to give you a Quick refrence to not put the Sale price or closeout price below, otherwise it would be a loss.