Cost, price and profit: how Quid works them out
What "cost" and "average cost" mean, where profit comes from, and how to keep the numbers honest.
Three numbers on every item
| Number | Meaning | Example |
|---|---|---|
| Cost | What you pay to buy one | 48.00 |
| Price | What the customer pays you for one | 69.00 |
| Profit | Price minus cost | 21.00 |
Your sales reports show Sale (money in), Cost and Profit for every item sold. Those numbers are only as good as the costs you enter.
Why the cost changes: average cost
Suppliers change their prices. Suppose you have 10 rolls of cable that cost you 48 each, and you buy 10 more at 52 each. What does a roll cost you now?
Quid uses the average: (10 × 48 + 10 × 52) ÷ 20 = 50.
This is called the average cost. Quid updates it for you every time you record goods arriving. It does not change when you sell.
When you complete a sale, Quid notes the cost at that moment on the sale. If the cost changes next month, last month's profit does not change.
How to keep costs right
- Enter a cost on every item. A cost of zero makes the whole sale look like profit.
- Record deliveries with the price you actually paid. See Receive a delivery (add stock). This is what keeps the average right.
- Do not edit the cost by hand to match a new supplier price. Record the delivery instead, and let the average work.
Stock value
"Stock value" on the Overview page and the Stock Status report is: quantity × average cost, added up for all stocked items. It tells you how much money is sitting on your shelves.
Buying in one currency, selling in another
Set Cost Currency on the item to the currency you pay the supplier in. Quid converts it to your own currency for profit and stock value.
My profit looks too high.
Look for items with a cost of 0. Go to and scan the Cost column.
My profit looks negative on one item.
Either the price is lower than the cost, or the cost was typed wrongly (for example the cost of a box instead of one piece).