Jump to content

What is the difference of Purchase cost and cost?


Recommended Posts

When I fill out fields for setting up items, I notice three boxes. One of them is for the price, and I use the purchase cost there, which is what the product costs me. But I'm confused about the part that says "cost." What does that refer to?

Link to comment
Share on other sites

Since you are subscribe to the Advanced Inventory features, there will be another field in your items for the purchase cost.

The difference between Cost and Purchase cost is that:

1. Cost:

- This is the overall cost associated with the item, including production, shipping, and other expenses.

- It helps you understand the total expense incurred in getting the item ready for sale.


2. Purchase Cost:

- This is the specific amount you paid to buy the item from the supplier or manufacturer.

- It helps you track how much you spent to acquire the product.

-Purchase cost is used to auto-fill the item's cost every time you will do a purchase order

In short, "Cost" is the total expense, while "Purchase Cost" is the amount you paid when buying the item.

  • Like 1
Link to comment
Share on other sites

I see, but how to calculate the cost?

For example, I got the item from a supplier for $5 each and I got 6 of them, I also paid the shipping fee of $10, and other expense costs $5

Question: How much is the cost of my 6 items?

Link to comment
Share on other sites

To calculate the total cost of your 6 items, you need to consider the cost of the items themselves, any shipping fees, and other associated expenses. Here's how you can calculate it based on the example I gave above:


1. Cost of Items:

You bought each item for $5, and you have 6 items.

Cost of items = $5/item * 6 items = $30


2. Shipping Fee:

You paid a shipping fee of $10.


3. Other Expense Costs:

I mentioned other expense costs of $5.


Now, add all these components to find the total cost:


Total Cost = Cost of Items + Shipping Fee + Other Expense Costs

Total Cost = $30 + $10 + $5 = $45


Therefore, the total cost of your 6 items, including the cost of the items, shipping fee, and other expenses, is $45.

To find the cost of each item, you can divide the total cost by the number of items. In this case, the total cost is $45 for 6 items. Therefore:

Cost per item = Total Cost / Number of Items

Cost per item = $45 / 6 items = $7.50/item

So, the cost of each item is $7.50.

  • Like 1
Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in

Sign In Now

Loyverse Point of Sale





  • Create New...