Forum Discussion
Average Purchase price
This is not a PowerBI specific question, but more of a business logic hurdle I can't seem to find a good solution to.
So my company can purchase items from different suppliers, at different times and at different prices. This would cause my "inbound purchase price" to fluctuate quite a bit.
How would you go about calculating an accurate profit for a specific item sold?
There is no link between buying an item and us selling it.
My issue with using something like moving average, is that it will change historical profits (if it's just a total average) or it would be arbetrarily calculated say once per day?
A static number isn't quite accurate, how do I pick which supplier price to hardcode to?
Has anyone found a good solution to this logical issue I'm troubled with? 😄
2 Replies
Hi Almiwork ,
Could you please provide some raw data in your tables (exclude sensitive data) with Text format and your expected result with backend logic and special examples? It would be helpful to find out the solution. You can refer the following link to share the required info:
How to provide sample data in the Power BI Forum
And it is better if you can share a simplified pbix file. You can refer the following link to upload the file to the community. Thank you.
How to upload PBI in Community
FIFO Method - Explanation And Illustrative Examples
The FIFO Method: First In, First Out
Weighted Average Coupon (WAC): Definition and Calculation (investopedia.com)
Best Regards
I don't have an expected result, that's what am asking with input for. I don't know how to model / logic the data, and wanted to know how other companies tackle this issue to calculate profits.
This is not a question that has a single correct answer.
