Pricing and costing are pivotal aspects of inventory management and financial planning. Sybiz Vision offers robust tools to manage these processes efficiently. In the recent Sybiz Masterclass Webinar, experts delved into the intricacies of pricing and costing within Sybiz Vision.  

In this guide, we explore the comprehensive features and methodologies discussed to help you optimise your business operations. 

Costing Methods in Sybiz Vision 

Sybiz Vision supports multiple costing methods, each tailored to different business needs:

1. Average Costing: The most prevalent method, which calculates the average cost of items in inventory. It simplifies cost management by averaging out fluctuations over time. 
2. Standard Costing: Predominantly used in manufacturing, this method assigns a fixed cost to items, providing a stable benchmark for cost control. 
3. Serial Costing: Ideal for high-value items tracked by serial numbers, offering precise cost allocation to each item. 
4. FIFO (First-In-First-Out) and LIFO (Last-In-First-Out): FIFO assigns the cost of the oldest inventory to the cost of goods sold, while LIFO uses the most recent inventory cost. These methods cater to different inventory management strategies but are less common today. 

Updating Costs in Sybiz Vision 

Maintaining accurate and current cost data is crucial for financial accuracy. Sybiz Vision provides several ways to update costs: 

• Supplier Costs: Automatically updated to reflect the most recent purchase prices, ensuring your records are always current. 
• Last Cost: The system remembers the last purchase price from each supplier, using this as the default cost for subsequent transactions. 
• Special Prices: Importing supplier price lists allows for up-to-date cost management, even before purchase invoices are received. This is particularly useful for businesses with a wide range of inventory items. 

Managing Inventory Costs 

Effective inventory cost management involves several critical practices: 

• Negative Stock Handling: Sybiz Vision enables you to sell items before processing the purchase invoice, essential for maintaining uninterrupted sales operations. This feature supports real-world scenarios where you receive goods that are not yet recorded in the system.
• General Ledger Postings: You post costs at the time of purchase delivery, not invoice receipt. This ensures that cost data reflects the actual state of inventory, aiding in accurate financial reporting. 

Sybiz Vision Pricing Strategies 

Sybiz Vision’s pricing capabilities offer flexibility and control:

• Price Scales: The foundational pricing method, allowing for straightforward price management. 
• Special Prices: Enable discounts and special offers to be configured, providing competitive pricing options for customers. 
• Contract Prices: These negotiated prices for specific customers take precedence over other pricing methods, ensuring key clients receive the agreed-upon pricing. 

Margin-Based Pricing Controls 

To safeguard profitability, Sybiz Vision includes advanced margin-based pricing controls:

• Minimum Markup Percentage: Ensures that all prices cover costs and include a desired profit margin, preventing underselling. 
• Severity Levels: Allow businesses to enforce strict adherence to pricing rules, reducing the risk of profit erosion. 

Integrating Costs and Pricing for Optimal Margins 

The interplay between costs and pricing is crucial for maintaining healthy margins. Sybiz Vision facilitates this with:

• Margin Calculations: Accurate cost data is essential for reliable margin calculations. Sybiz Vision uses the latest cost data to calculate margins, providing real-time insight into profitability. 
• Scenario Analysis: By using dummy transactions, businesses can forecast manufacturing costs under different conditions, allowing for better financial planning and decision-making. 

Watch the Sybiz Masterclass Webinar 

For a more in-depth understanding of the pricing and costing features in Sybiz Vision, you can watch the full Sybiz Masterclass Webinar. This comprehensive session covers all the topics discussed in this blog post and provides additional insights and examples. Watch it here. 

Key Takeaways 

Sybiz Vision offers a comprehensive suite of tools for managing pricing and costing, tailored to meet diverse business needs. By leveraging these features, businesses can ensure accurate financial records, optimize inventory management, and safeguard profitability. 

For more detailed guidance on implementing these strategies in your business, explore Sybiz Vision’s documentation or contact our expert Sybiz consultants at AlphaBiz Solutions 

Optimise your pricing and costing strategies with Sybiz Vision

Book a consultation with our experts today to learn how you can enhance your business operations and achieve greater financial control.