AVE COST and LAST COST reflects case cost. Average cost is recalculated every time you receive a purchase order. Profit percentages are based upon average cost. If you want profit figures to be accurate, you want to make sure you receive purchase orders. Last cost is also updated every time you receive a purchase order. You'll probably want to print a Price and Profit Analysis Report based upon last cost so the computer can tell you whether or not price changes are necessary. This is another important reason to receive purchase orders on the computer. Here's a quick example of why it's so important to have accurate cost figures to help you analyze your pricing structure.

Our SUGGESTED PRICE/MARGIN tells the computer we want to make 25% profit and the report tells us we have to sell the item for $11.45 in order to make that profit. The CURRENT PRICE/MARGIN informs us that we are not making 25% profit. So it's time to decide whether or not you want to change your retail price or perhaps you just can't make 25% on this item. This item LAST COST us $8.59 per bottle. We know when we LAST PURCHASED the item and the report even tells you the purchase DATE prior to the last purchased date. Now here's the most valuable information! It calculates the change in dollars between the last purchase and the one prior to that. The purpose is to compare how much more (less) the cost is and how that change impacts your profit percentage. You have 3 cases and 6 bottles left in stock. Those 18 bottles cost you $.26 more per bottle! For every day you don't change your retail price, you are losing $.26 on every bottle sold! That's a big deal in the liquor business. As you know, it's a "nickel and dime" business. And once you've sold those bottles, you can't get back that $.26!