Products - Cost or Retail price?

jjsnacksjjsnacks Member Posts: 1

Hi there!

Super new to Wave and all things accounting, so I'm hoping I can get some guidance on this.
Should the price entered under "Products and Services" be the cost or retail price?
I had previously entered the cost price, and sat down today to fill out all my sales over the last few months in the "Invoices" section.
I noticed that it uses the cost price (obviously haha) and I'm wondering if the point is that it deducts the cost price from my revenue?
Any clarification or guidance would be so helpful!

Thanks,
Jess

Comments

  • JordanFromWaveJordanFromWave Administrator Posts: 118 admin

    Hey @jjsnacks First off, Welcome to Wave and the Wave Community! We are happy to have you. :)

    In terms of creating products in Wave, there is actually 2 ways to do this. If you are purchasing products and selling them at different rates, then the best way would be to create two separate products (one under the Sales tab and one under the Purchases Tab). The cost will be the amount that shows up on the Invoice (Sales) or the Bill (Purchase). Ultimately, whenever the product is added to a bill, it will count as expense and to an invoice it would count as income. Therefore, when you look at your Profit and Loss report, the purchases (expenses) would be subtracted from the sales (income) to show you the overall profit.

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