Product costs
Overview
Cin7 Omni products have their costs broken into three main parts:
Unit cost
The purchase cost from the supplier (converted to your local currency).Landed costs
The freight, import, and other costs related to receiving the stock to your warehouse.Cost of goods sold
The overall cost of the product, which is the purchase cost and any additional landed costs.
This means that your product costs can change depending on the supplier's cost, exchange rate and other costs when you purchase the product. So some of your stock can cost more (or less) than the others of the same item.
Unit cost
Unit cost is how much you pay a supplier for a product excluding freight, import fees, or other costs. You can add the unit cost for new and existing products in your local currency.
When you create a purchase order, the product unit cost will autofill on the purchase order. You can override this with the actual cost that the supplier is charging you.
The product cost will then show the unit cost from your most recent purchase order if:
The product has a preferred Supplier.
The purchase order uses that supplier (used in the product).
You can add more cost fields for different currencies and tax status (including, excluding, or exempt from tax).
Landed costs
When you purchase your products, you can add the unit cost and any landed costs. Landed costs are additional costs to bring your products into your warehouse. This may include freight, custom duty rates, or other fees.
You can add your landed costs to your purchase orders.
Cost of goods sold (COGS)
Cost of Goods Sold is how Cin7 Omni values your products. This combines the:
Unit price in the purchase order or adjustment.
Landed cost for that item.
Less tax.
When a sales order is first created, the gross profit summary uses the unit cost from your most recent purchase order.
But when your order is dispatched, the Cost of Goods Sold is calculated and sent to your accounting software and available for reports.