How to account for product pricing changes
When a product's price is increased from x to x+(x*5%), financial records should reflect the latest effective price. This article explains, from both accounting principles and practical perspectives, why the new price should be recorded, and clarifies the difference between the original price and the new price.
I have a question regarding pricing products.
Let’s say I have a product, price=x
But now it has increased by 5%, so p=x+(x*5%)
How to deal with this change in price, since we have got it with x and now it’s x + 5% or any amount.
What should I record in excel for that product price?
x OR x+(x*5%) ?
IF x why not x+(x*5%) ?
IF x+(x*5%) why not x ?