Apicbase automatically tracks inventory values so every stock movement — sale, waste, transfer, or count — reflects a reliable cost value. This article explains how stock value is calculated using the Weighted Average Cost (WAC) method.
Accurately valuing your stock is essential for reliable inventory and profit reporting.
Apicbase automatically updates your stock value in the background using the Weighted Average Cost (WAC) method. This means every time items are added or removed — through purchases, sales, waste, transfers, or recipe production — your inventory always reflects a consistent and realistic cost.
The sections below explain how Apicbase handles stock depletion, stock increases, and special cases, ensuring your inventory value stays precise and up to date.
Stock Increases (Adding Stock)
Whenever stock is taken out of inventory (for example through sales, waste, transfers, or recipe creation), Apicbase calculates the value of the items based on the Weighted Average Cost.
Here is an example:
- You receive 80 bottles of wine at €25 each → total €2,000.
- Later, you receive another 120 bottles at €27 each → total €3,240.
- Your total stock is now 200 bottles, with a combined value of €5,240.
- The weighted average cost is: €5,240 ÷ 200 = €26.20 per bottle.
This way, every depletion uses the same average cost until new stock is added. So what happens with the next delivery:
- You receive a new delivery with 50 bottles at €28 each → total €1,400.
- Your total stock is now 250 bottles, with a combined value of €6,640.
- The weighted average cost is: €6,640 ÷ 250 = €26.56 per bottle.
Stock is added in several ways, and each time Apicbase updates the weighted average cost:
- Ordering: When you receive stock, the cost is based on the purchase price you register.
- Transfer (in): When stock arrives from another outlet, it keeps the cost registered in the sending outlet.
- Uncontrolled gain (stock counted higher than expected):
- By default, the added units are valued using the current Weighted Average Cost.
- If there haven’t been any purchases in the last 30 days, Apicbase falls back on the current theoretical price of the package.
- Stockable recipes: When stockable recipes are created, their value is based on the ingredients and personnel costs used in preparation.
After every addition, the weighted average is recalculated for that item.
Stock Depletion (Deducting Stock)
Even though purchase prices varied (€25, €27, and €28), every sale uses the current weighted average cost.
This ensures consistency — all bottles have the same value, and reports always reflect the real, evolving stock cost.
Below example shows you how this works when we take into account the sales:
Why Weighted Average instead of using FIFO?
- Simple: All units share the same cost, making reports clear and easy to interpret.
- Accurate: It smooths out price fluctuations, giving a fair view of your stock value over time.
- Efficient: No need to track multiple cost layers — the system recalculates one consistent average automatically.
In summary: Apicbase values your stock using Weighted Average Cost (WAC). Every incoming stock movement updates the average cost, and every outgoing movement uses that same value — ensuring consistent and reliable inventory management.