tracking incoming shipments and product costs

“My product costs change all the time and I can’t stay on top of my manual record keeping.”

Problem: A small electronics import business maintains multiple spreadsheets in order to track their incoming shipments and the costs associated with all their items. The level of activity on receiving and shipping products has greatly increased and has made them difficult to track.

How Paragon helps

Creating receipts to update actual costs of purchased products

This company can create a receipt, which updates their inventory costs and inventory numbers at the same time.

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tracking incoming shipments and product costs

Other costs can be added to the purchase, such as duty and freight, to obtain a true value of the cost of the products.

Every time a receipt is created for this product with different costs, Paragon will track that costing information by receipt.

Calculating the actual cost of the product in real time

In Paragon, this company can select what costing or valuation method of inventory they want to use, like FIFO or LIFO. Paragon will calculate the actual cost of the sale based on the method chosen, and will calculate the inventory cost dynamically based on the ins and outs of the inventory as they occur.

The company can see the entire history of the cost calculations of each inventory item and can right-click on the value to see the corresponding calculation.

Based on the costing of the transaction, the journal entry will record the cost into their financial statements, allowing the company to then see the product costs.