How Nory Calculates Opening Stock Value

Your opening stock value represents the cost of all stock items you have on hand at the beginning of a stock period. This value is critical because it forms the baseline for:

• Cost of goods sold (COGS)

• Gross profit reporting

• Accurate reconciliation between periods

To ensure your numbers stay consistent and meaningful, Nory uses a cost method that reflects your actual delivered prices, not just supplier list prices.

Nory uses a weighted average delivery price to determine the cost per unit for each product at the start of a new period.

The formula

Opening stock value = Weighted average delivered price × Opening quantity

Where:

Weighted average delivered price = Total delivered cost ÷ Total delivered quantity

Nory looks at all the deliveries received during the previous stock period and calculates the weighted average cost per unit across those deliveries.

Why Weighted Average?

Using a weighted average ensures your stock valuation reflects real-world costs, even when:

• You receive the same product from different suppliers

• Prices fluctuate due to regional variations, promotions, or seasonal changes

• Staff order at different times or from multiple locations

Because all these factors impact what you actually paid, weighted average provides a more accurate, reliable valuation than a single supplier price.

Opening vs. Closing Stock: Always in Sync

With this method, Nory ensures that:

➡️ The opening stock value for a period always matches the closing stock value of the previous period.

This alignment creates clean, consistent reporting every time you move from one stock period to the next.

What Happens if an Invoice Is Updated After a Report Is Closed?

We know invoices can arrive late or need correcting. To keep your data accurate, Nory will:

• Automatically refresh the relevant stock period if an invoice is added or updated

• Recalculate the weighted average delivery price

• Update both closing and opening stock values accordingly

You don’t need to manually re-save or reopen the report—Nory keeps values aligned for you.

Does an Incorrect Invoice Entry Affect All Locations?

No. Weighted costing is applied per location, not company-wide.

If an invoice is entered incorrectly at one site:

• Only that location’s weighted average and stock values are affected

• Once the invoice is corrected, the impact remains isolated to that site

• Other locations are never affected

This prevents company-wide inconsistencies and helps maintain clean data integrity.

How “Auto-Allow Price Changes” Fits In

Your Auto-Allow Price Changes setting works exactly as before.

• If the setting is OFF, staff-entered price changes will not automatically update your product catalogue.

• This means your core pricing data stays protected, even if someone mistypes a price on an invoice. However, the wrong invoice will still generate poor data, so you want to correct it!

• The weighted average is still calculated using the delivered prices, but your master product price remains unchanged unless you approve the update.

This ensures stock valuation stays accurate without compromising control of your central pricing.

An Example

Let’s say during a stock period you received:

• 10 units at £5 each

• 20 units at £6 each

Total delivered cost: £170

Total delivered quantity: 30 units

Weighted average delivered price = £170 ÷ 30 = £5.67

If you begin the next period with 12 units in stock:

Opening stock value = 12 × £5.67 = £68.04

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Key Benefits at a Glance