Average Unit Cost and Price

When dealing with forecasted revenue and cost-of-goods-sold (COGS), StockIQ has several strategies to try and calculate useful values.

Rather than use simple values such as the current standard cost or standard price, there is a sequence of checks to try and arrive at the best average unit cost and price to use for a given item, site, and forecast group in a certain period.

During the startup calculation process, StockIQ goes through the following steps to build a stable of costs and prices for each item/site/group/date combination:

Historical Averages

1. If you have the information available, you can provide StockIQ with an Item-Customer Price data feed, showing your historical and future/projected prices for each item by-customer, which StockIQ will use.  (There is not currently a item-customer-Cost or COGS data feed available).  Please contact StockIQ if you would like to add this data feed.
2. If this is not used, then for historical points, we look at cost and price information on each sales order record for a given item/site/group.  Use this as the most appropriate average cost for that item/site/group in that period.
3. If no such information is available, use saved item-site history to look at what costs and prices were on that day.
4. If no such information is available (e.g. the point is before SIQ was installed), fall back on the current-day standard cost and price info.

Projected Averages

1. If you have the information available, you can provide StockIQ with an Item-Customer Price data feed, showing your historical and future/projected prices for each item by-customer, which StockIQ will use.  (There is not currently a item-customer-Cost or COGS data feed available).  Please contact StockIQ if you would like to add this data feed.
2. For future points, since there is no sales order information just yet, StockIQ builds a table of average unit cost and price for each item/site/group combo by looking at the most recent 3 months of sales history for that cohort, and calculates an average cost and price.
   1. If no information is available 3 months back, it attempts to search 6 and 12 months back as well.
3. These averages are used when projecting revenue and COGS into the future for all future forecast points.
4. If no such historical data is found with cost and price info to use, StockIQ falls back on historical item-site and current-day item-site data as described above.