Price leveling is a procedure by which the price of a stock of goods in a wholesale (warehouse) or retail facility is increased or decreased. Increasing and decreasing the selling prices of goods are business changes that very often occur in the business of a commercial company. The virus pandemic in recent years has changed the habits of customers around the world, rising energy prices and inexplicable reactions to events in Ukraine, has caused price inflation and the need for frequent changes. Here you should not confuse the calculation of the selling price of goods that is made when the goods enter the warehouse.
List of goods basis for price change
Any deficits and surpluses are recorded at the old price, and then the price is changed. If the bookkeeping of goods in a commercial company is organized at purchase prices, then their increase or decrease does not affect the difference in price and VAT of goods in stores.
Typically, the increase and decrease in the price of goods is mainly done in retail outlets, where the goods are carried at selling prices without VAT and at selling prices with VAT. An increase or decrease in the price of goods is preceded by a list of goods in the sales facility by commission. The inventory in the inventory list for each type of goods enters the determined quantity, current selling price and value, new (leveled) price and value, as well as the difference or result of leveling that can be given in the form of increase (+) or decrease (-).
The reasons given by the company’s management for this step can be numerous and different, and the most common are:
1. general market situation in terms of demand for goods
2. monetary disturbances in the market and economy
3. changes in sales and especially sales price policy
4. bad situation with stocks of goods resulting from slow sales,
occurrence of non-current goods (outdated, off-season, etc.), damaged
goods, etc.
Leveling is a bookkeeping document that records changes in the prices of goods in the warehouse.
Preparation of a price leveling document
In the report
Download excel price leveling template file
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