What is the difference between price per unit and cost per unit?
Price Per Unit
The Price Per Unit is the sales price of an item; this is what you charge the people who buy it from you. You determine your sales price (what you want to charge your customers for your good and services on invoices).
Most businesses use a standard mark-up on their cost to determine their price. The mark-up percentage is typically based on their industry or product line. To calculate the price based on a standard markup, take the cost of the item times the mark-up percentage to find your sales price. (Note: You may want to round to the nearest dollar, quarter or dime.)
You enter the Price Per Unit when setting up your items. You can change the price at any time.
Cost Per Unit
The Cost Per Unit is the amount it cost you to buy the item from a vendor.
You enter Cost Per Unit in several places in WorkingPoint:
When purchasing the item on a bill or expense/purchase or payment form - Here the Cost Per Unit is determined by the vendor and is cost you to buy the item from them per unit.
When adding your starting inventory - When you start to track inventory and you edit the item to enter your starting quantity, you enter the Cost per unit. The starting quantity value can typically be found on the last bill you paid for the items or the ending inventory valuation report from your previous system.
When you add to the available quantity of an item using Add Inventory - Here Cost Per Unit displays the current average cost of the item but you can change it if you know the exact per unit price of the items you are adding.