The cost price of a SKU is based on the purchase price plus extra costs that may be associated with the SKU, for example processing, production, freight, customs, packaging, etc.
The difference between the sales price and the cost price is the profit, also called the gain or the trade margin/markup.
In tracezilla, the cost price of the SKU is calculated on the basis of the following:
- The price of the raw material (purchase price)
- Expenses that are either manually added or transferred via the accounting program e-conomic
- Budget lines regarding the four types of orders: Purchase, production, stock and return orders
Below you can see examples of expenses and budget lines:
- Freight / Shipping
- Customs expenses
- Depreciation on equipment
In case expenses are attached to an entire order, the expense / budget line will be distributed according to the net weight of the different lots on the order. Thus, expenses on production orders will be divided on the produced lots according to weight.
You will be able to see the expected and actual cost prices in the field Key Figures on your orders. Read more about key figures.
The actual cost price is calculated on the basis of the expense documents that are associated to the lot. In addition, overhead budget line are also included ei budget lines for which you do not have an expense document.
The expected cost price is calculated on the basis of the unit prices that your yourself have entered in tracezilla. For example, the unit price of the goods on your purchase orders, the unit price of freight charges or the unit price of production expenses. These expenses are all visible as budget lines on orders.
If you want to dive deeper into how the cost price is calculated for a very specific lots, you can do the following:
1. Find the order where the specific lot is selected.
2. Open the lot line by clicking on the + symbol on the left side.
3. Click on the blue button with the three dots on the right side and select Go to lot.
4. Click Reports in the upper right corner and select Cost Breakdown from the drop-down menu.
5. Here you can choose to view the tabs By SKU, By SKU / Unit of Measure, By Lot / Entry and By Supplier. You can read more report here.
6. In case an expense differs from others on similar orders, you can take a closer look at the expense by clicking Financials on the top menu and selecting Expenses in the drop down menu.
7. You can use the filter on the left in order to search for the number of the specific expense
8. If you click on the expense, you can see what it contains.