What is cost price?
The cost price represents the expense associated with the purchase of the product.
The cost price is therefore the purchase price + expenses which can include freight, production, customs, packaging, and other costs associated with bringing the product home.
Is cost price the same as purchase price?
Since some systems and webshop platforms often only support the purchase price, it is often used as the cost price. However, the two prices are different. The purchase price is the base price and the expense you pay to the supplier for 1 unit of the product.
The purchase price is what is used on the purchase order to the supplier.
The cost price is the price used internally in accounting to calculate your margin on the sale of the product.
How is the cost price set on the product?
In Indexed PIM, the cost price is set on the product under prices at the same level as the purchase price and others.
Calculation of cost price during inventory reception
The cost price is often adjusted during goods reception. For example, if you purchase 10 units at a cost price of 97 kr. per unit, these items are added to stock with this value, and the total inventory value is updated with the average value.
