When you stock-in a product, it means you are adding more quantity of that product to your inventory. Usually, when you buy these products from a supplier or vendor, you pay some amount for each item. This amount is called the purchase price.
So, every time you stock-in items, you should also enter the purchase price, that is how much you paid for each item.
If you don’t enter the purchase price when adding the stock, the system will take the price is zero or purchase price mentioned in products sections and will affect the Profit and Loss reports:
When you sell a product, the system calculates your profit by subtracting the purchase price from the selling price. For example:
If you sell a product for ₹100, and you bought it for ₹60, your profit is ₹40.
But if the system thinks you bought it for ₹0 (because no price was entered), it will show your profit as ₹100, which is not correct.
This wrong profit will show up in your Profit and Loss report, and it can give you a false idea of how much money you are actually making.