## Zoho Inventory Documentation Index

Access the complete documentation index at:
https://www.zoho.com/us/inventory/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Batch Price Management

Batch Price Management is a feature that allows businesses to set and control sales prices for individual batches of an item. The pricing is determined based on the **Sales Margin** and the selected **Batch Pricing Method** in Settings.

The Sales Margin is used to calculate the selling price for newly received batches in inward transactions. This ensures that new batches automatically get a selling price based on the predefined margin.

**Formula:**

> **Selling Price = Cost Price + (Sales Margin % × Cost Price)**

## Batch Pricing Method

The Batch Pricing Method determines how the selling price and MRP are pre-populated for existing batches in sales (invoice) and purchase (purchase receives) transactions.

There are four available methods:

Method

Description

**Default Price**

Uses the selling price and MRP specified during creating the item.

**Latest Price**

Applies the selling price and MRP from the most recently received batch.

**Highest Price**

Uses the highest selling price and MRP available across all inward transaction batches.

**Price From Inward Transaction**

Applies the selling price and MRP defined for the selected batch during a transaction. You can choose from the available prices using the **Available Prices** option.

* * *

## Enable Batch Price Management

To enable this in Settings:

*   Click the **Gear** icon in the top right corner.
*   Navigate to _Module Settings_.
*   Click **Items** under _General_.
*   Scroll down to the **Advanced Inventory Tracking** section.
*   Check the **Allow different MRP/SellingPrice for each Batch Tracked Items** option.
*   Enter the **Sales Margin** and choose the **Batch Pricing Method**. These will be applied by default when you haven’t set them during item creation.

![Configure Batch Price Method](/inventory/help/images/advance-inventory/batch-price-management/batch-price-management.png)

## Sales Margin

**Insight:** To configure this at the item level, create or edit a batch item, navigate to [_Sales Information_](https://www.zoho.com/us/inventory/help/items/items-overview.html#sales-purchase-info) and enter the Sales Margin and Batch Pricing Method.

## Apply Batch Pricing in Invoice

If the sales order contains batch-tracked items and is converted to an invoice, you can choose one of the following pricing options:

*   Use the sales order price for the item.
*   Apply the batch price based on the selected configuration option.

### Apply Prices Using Default, Latest, or Highest Pricing Methods

*   Create and confirm a [sales order](https://www.zoho.com/us/inventory/help/sales-orders/sales-order-creation.html).
*   Click **Convert to Invoice** in the top section of the sales order details page.
*   In the upcoming pop-up, click **Proceed**.
*   Click **Available Price(s)** below the item quantity.
*   Hover over the price you want and click **Apply Price**.

### Apply Prices Using Price From Inward Transactions Method

For the **Price From Inward Transaction** batch pricing method, you can apply the selected batch prices from one batch to another based on your requirement.

*   Create and confirm a [sales order](https://www.zoho.com/us/inventory/help/sales-orders/sales-order-creation.html).
*   Click **Create** in the top section of the sales order details page.
*   Select **Package** or **Picklist** to open the respective creation page.
*   On the creation page, select the batches for the items.
*   Once completed, click **Save**.
*   On the details page, navigate to the **Associated Sales Order** tab at the top.
*   Click the **Sales Order#**. You will be redirected to the sales order details page.
*   Click **Convert to Invoice**.
*   In the upcoming pop-up, click **Proceed**. You will see the item’s quantity split based on the selected batches.
*   Click **Available Price(s)** below the item quantity to view the batch prices available for the item.
*   Click **Apply Price** next to the price you want to sell for the item.

## Batch Prices in Purchase Receives

While receiving a batch-tracked item, the selling price for new batches will be automatically applied based on the configured **Sales Margin** in Settings. For existing batches, the selling price will be applied according to the configured **Batch Pricing Method**.

To add the selling price for a batch while receiving an inward transaction:

*   Create a [purchase order](https://www.zoho.com/us/inventory/help/purchase-orders/purchase-order-creation.html#creating-a-new-purchase-order).
*   Convert the purchase order to **Purchase Receives**.
*   Click **Select Batches** below the item quantity.
*   For **new batches**, the selling price will be shown based on the item’s configured Sales Margin.
*   For **existing batches**, the selling price will be shown based on the configured batch pricing method.

**Note:** You cannot edit the selling price for existing batches in the transaction.