Question: How is the Fuel Pool Margin calculated?
Answer:
We can calculate the fuel margin in one of the following ways:
1. Average value for last X days (defaults to 7 days)
2. Current average value - based on the data for entire last day only.
Base formula:
(SUM (Fuel Sales Amount) - SUM (Cost of Inventory * Sales Quantity)) / (SUM (Sales Quantity)))
Cost of inventory: This value is calculated when user accepts fuel invoice and is taking an effect till next invoice will be accepted and new value will be calculated.
The formula of the calculation is recursive:
Cost of Inventory = (Open Inventory gallons * Previous Cost of Inventory + Purchased gallons * Current invoice cost) / (Open Inventory gallons + Purchased gallons)
where
Open Inventory gallons: the beginning inventory on the day of invoice.
Previous Cost of Inventory: previously calculated cost of inventory for previous invoice.
Purchased gallons: number of gallons that was delivered with current invoice.
Current invoice cost: cost of one gallon for current invoice.
We can calculate the fuel margin in one of the following ways:
1. Average value for last X days (defaults to 7 days)
2. Current average value - based on the data for entire last day only.
Base formula:
(SUM (Fuel Sales Amount) - SUM (Cost of Inventory * Sales Quantity)) / (SUM (Sales Quantity)))
Cost of inventory: This value is calculated when user accepts fuel invoice and is taking an effect till next invoice will be accepted and new value will be calculated.
The formula of the calculation is recursive:
Cost of Inventory = (Open Inventory gallons * Previous Cost of Inventory + Purchased gallons * Current invoice cost) / (Open Inventory gallons + Purchased gallons)
where
Open Inventory gallons: the beginning inventory on the day of invoice.
Previous Cost of Inventory: previously calculated cost of inventory for previous invoice.
Purchased gallons: number of gallons that was delivered with current invoice.
Current invoice cost: cost of one gallon for current invoice.