Work out stock loss value instantly with clear inputs, formula shown and shareable results.
Stock loss has two valuations. The profit-and-loss charge is at cost, because that is the money already spent, while the retail value represents the sales opportunity lost. Both matter: the cost figure hits margin, the retail figure hits the sales plan.
Cost of loss
Cost loss = Net units lost x Cost per unit
Retail value foregone
Retail loss = Net units lost x Retail price per unit
Cost for the accounts and retail for operational discussions. Quoting retail value in the accounts overstates the loss by the margin.
Yes, at whatever it realises. Recovered units returned to sale reduce the loss at full cost; damaged units sold off reduce it by the clearance price.