Standard cost of an Item

Admin portal version 1.25 or higher

Quick navigation: Data management > Items > Select Item > Supplier Tab

This guide will go through the following subjects:

• What is the Standard cost
• How to calculate it

What is the standard cost?

The standard cost is a value that represents the average cost of an item that includes both purchase and service costs. You can find the Standard cost under the Supplier tab on each Item at the Admin portal.

It is important to remember that Consumable items will always have a the same standard cost as the purchase price.

If you have a durable item that you send for service, and that service costs money, I.e you have a purchase price of 100€ and a service cost of 20€, then the standard cost would be 120€.

How to calculate it

This calculation is based on all purchase and service orders sent during the last 180 days. If there are no service or purchase orders during the last 180 days, the standard cost will be set to the price per piece.

For consumable items, each pick generates usage cost of 100% of standard cost. For durable items it is possible to define how usage cost is generated:

• Percentage of standard cost
• Fixed per pick – Usage cost of a pick is fixed for each pick and is defined by the administrator. It does not involve standard costs.
• Per time in cost allocation – Usage cost is determined by the time for which item is picked. A fixed cost for a specific time period can be set by the administrator. It does not involve standard costs.

For assemblies, the standard cost is calculated according to all durable items used in that assembly