Sometimes you buy a part in one quantity and sell it in another. For example, you might buy wire in a 100 foot roll and sell it to your customers by the foot.
The Sales to Purchase Ratio lets you set this up on the part. Boatyard then works out the cost and price of each unit you sell, keeps your stock in the units you sell, and shows the true cost of each unit in your profitability reports.
Setting Up a Part
You can set the Sales to Purchase Ratio when you create a new part or edit an existing one.
Go to Part Inventory and create a new part, or open an existing part and click edit
Enter the part information as usual
In Bulk Cost, enter the cost of the unit you buy. For a 100 foot roll of wire, this might be $50
In Sales to Purchase Ratio, enter how many selling units are in one buying unit. For the wire, this is 100, because one roll contains 100 feet
Boatyard calculates the Unit Cost for you. In this example, that's $0.50 per foot
The Price is calculated from the Unit Cost using your standard markup rate. You can change the price if you'd like to set your own
Save the part
Once saved, the part detail page shows a breakdown of the pricing and costing with the ratio applied.
Good to know
The ratio is set to 1 by default, so parts you buy and sell in the same quantity don't need any changes
You can use decimals in the ratio, up to 4 decimal places
How Stock Is Counted
Your in-stock quantity is always shown in the units you sell. In the wire example, a quantity of 1 means 1 foot, not 1 roll.
If you add a ratio to a part that already has stock, the in-stock quantity won't change. If your existing stock was counted in buying units (for example, rolls), update the quantity so it reflects the selling units (feet).
Ordering the Part on a Purchase Order
When you add the part to a purchase order, you order it in the units you buy.
The PO shows the bulk cost of each buying unit (for example, 1 roll at $50)
It also shows the number of selling units you're ordering. Ordering 2 rolls shows 200 units
When you receive the PO, your in-stock quantity goes up by the number of selling units. If you had 1 foot in stock and received 2 rolls, your new in-stock quantity is 201
The Part Activity Timeline records the receipt in buying units (for example, 2 rolls received)
Selling the Part
When you add the part to an order or sell it through Retail Sales, it's sold in selling units at the unit price. For the wire, that's per foot.
QuickBooks Online
If you use our QuickBooks Online integration, purchase orders are sent to QuickBooks with the quantity you ordered in buying units. For example, a PO for 2 rolls shows a quantity of 2 in QuickBooks.
Profitability Reporting
Your profitability reports use the Unit Cost, so you see the true cost of what you sold (for example, $0.50 per foot) rather than the cost of the whole roll.
Vendor Price Updates
If you receive automatic monthly price updates from one of our integrated vendors, those updates don't set or change the Sales to Purchase Ratio. If you buy a vendor part in bulk and sell it in smaller quantities, set the ratio on the part yourself.