Did You Know: The differences between Unit Cost, Revenue Cost, and Inventory Cost

In the Propago Platform, different terms are used to describe the value of inventory in the warehouse. The three cost-related terms used on Propago are:

Unit Cost

Unit Cost is an arbitrary field that can be used to calculate SKU inventory costs or your cost to the end client. This is not the end user’s price for the item but it is visible to front end users.

Unit cost is a part-level setting and the unit cost field can be found in the part details page under the Basic Settings section.

Note: Unit Costs are viewable by front end users.

It is displayed on the Portal Admin / Part details and can be modified by a portal admin user. It is also displayed in multiple front-end reports.

Revenue Cost

Revenue cost is an internal part-level field only available to back end user Admins. It can be used to help calculate and report on your revenue costs.

Revenue Cost is saved at the time of order to the order line.

Find the Revenue Cost field on the Price List details page for a part.

Inventory Cost

Inventory Cost refers to the cost of inventory that is entered into the system when inventory is received. Each time a SKU is received into the warehouse, you will be asked to record the cost per unit of the SKU.

Inventory Costs are used to determine Inventory Cost Layers. See here for more on Inventory Cost Layers.

Note: On Propago, the term “cost” is distinct from the term “price.” Price refers to what end users pay for the parts they order. Cost refers to the value of inventory. 

If you have any questions or need support, you can contact our support team at: support@propago.com or 512-887-5847

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