About the Order Cost
About Average Cost | Enter/Edit Cost | Price/Cost Relationship
Basic
Note: The ability to see cost fields, including margin and markup and other fields related to cost, can be controlled by security rights. If you do not have the right to view item costs, the fields will be masked like this "*****". This right affects cost fields in inventory and on all documents and reports.
Order cost (Order Cost field, located in the More Info section of the item record) is different than the average unit cost. An item's order cost is the cost you are currently paying your vendor for one unit of the item.
Over time, with cost increases, it is normal for your order cost to move higher than your average unit cost, as you may have some quantity left in stock that was purchased at a lower cost when new shipments are received.
When you make a purchase order, the order cost in inventory is suggested as the purchase order cost. You can edit this cost on the PO, if necessary. When you receive the ordered items, the voucher that references the PO will automatically take its cost from the PO (if not referencing a PO, the order cost from inventory is suggested as the voucher cost).
When a voucher with a changed cost is saved it will automatically update the Order Cost field in inventory, so that the new order cost is suggested on the next PO or voucher made for the item. Point of Sale also calculates the new average unit cost for you in this situation.