Inventory Cost Tracking & Financial Exports

To optimize your warehouse profitability, use SKUSavvy's advanced inventory cost tracking. The system provides a granular, real-time valuation of physical stock at the bin level. This ensures procurement prices, shipping fees, and duties accurately reflect in your Cost of Goods Sold (COGS).

Navigate to Company Settings > Enable Cost Tracking to turn on this company-wide feature. Every inbound shipment, transfer, adjustment, pack, and unpack will now participate in cost calculations.

• Default Landed Cost: A per-SKU fallback unit cost used whenever no explicit cost is provided.

• Bin Unit Cost: The live weighted average cost of the units physically sitting in a specific bin.

• Order COGS: The unit cost captured at the moment you pack an item into an outbound shipment.

The platform uses a 'Moving Weighted Average' calculation to determine inventory value. When you introduce new inventory to a bin, the unit cost for all items in that specific bin recalculates.

Formula: ((Current Bin Qty * Current Bin Unit Cost) + (Incoming Qty * Incoming Unit Cost)) / (Total Bin Qty) = New Moving Average Unit Cost

Note: Because the average calculates at the bin level, moving items preserves the cost associated with those specific units. If you transfer stock from a 'High Cost' bin to a 'Low Cost' bin, the receiving bin will perform a new weighted average calculation upon arrival.

When you pick items from a bin, the per-unit cost stays constant. Only the bin's total cost shrinks proportionally.

To maintain accurate valuations when explicit costs are missing, the system uses a Default Landed Cost. Every item has this fallback field, and the variants that map to that item share it.

When Default Costs Apply

• Manual Adjustments: Pre-fills when you add stock without a cost to keep WAC accurate.

• Inbound Check-ins: Used as the receiving cost on PO lines missing a unit cost.

• Reports: Valuates SKUs with no on-hand stock for replenishment forecasts.

If you never set a default, the system falls back to the most recent non-zero unit cost recorded for that SKU.

Note: Default Landed Cost is per-SKU, not per-bin. Setting it only affects future cost pre-fills and new inbound stock. To restate the cost of stock you already hold, you must perform an inventory adjustment.

To Set Default Landed Costs

• Per item: Open the variant page and edit the field directly.

• Bulk: Open the Import Default Landed Costs page from the search bar to upload up to 10,000 rows via CSV.

To get accurate WAC values from day one, you must run imports in the correct sequence. SKUSavvy provides three distinct import flows.

Recommended Import Order

1. Run a Landed Cost Import to establish a per-SKU default for every variant.

2. Run a Quantity Import to seed your physical bin counts.

3. View Bin Locations for high-volume SKUs to verify the per-unit costs.

To capture true inventory cost, add Additional Costs to the purchase order. SKUSavvy splits freight, duties, and fees across the products they paid for, then blends each share into the per-unit value of the received stock. You can enter them before, during, or after check-in.

Allocation Strategies

Each Additional Cost row carries its own strategy. You can mix and match strategies on the same shipment to allocate costs accurately.

• By Quantity: Splits cost proportionally to the number of units on each line.

• By Value: Splits cost proportionally to the line value.

• By Weight: Splits cost proportionally to total line weight.

• None: Not split. The cost stays on the order total and changes no unit inventory cost.

How Costs Blend

1. Stage 1: Allocates per line item by summing the split costs.

2. Stage 2: Blends the allocated cost into the receiving unit cost to produce the true landed unit cost.

Formula: ((Line Unit Price * Line Qty) + Allocated Additional Cost) / Line Qty = True Landed Unit Cost

Penny-Perfect Rounding

To ensure allocated costs sum back to the exact dollar amount, the system uses the largest remainder method. The unit holding the largest fractional remainder receives the extra cent.

Additional Costs are not locked at check-in. Add, change, or remove one at any time, including after the stock is received, picked, or shipped, and SKUSavvy moves inventory value and cost of goods sold by the difference only.

Entire PO or One Shipment

Every cost row is applied either to the entire PO, where it divides over the ordered quantities, or to one shipment, where it divides over the units that shipment received. A PO that arrives in two deliveries with two freight invoices should carry one row per shipment, so the first delivery does not pay for freight the second one caused.

A shipment cost reaches inventory when you complete that shipment check-in, because the received quantity is not final until then. An entire-PO cost applies at once and is stamped on each unit as it is received.

When you move inventory via a Transfer Order, the 'Transfer Value' calculates from the source bin's current unit cost. If you place items into a destination bin already containing that SKU, a new weighted average generates.

Additional Costs belong to purchase orders, not to Transfer Orders. A transfer carries the cost of the units it moves, so the value leaves the origin bin with the stock and joins the weighted average of the destination bin.

To track profitability accurately, outbound orders capture the specific COGS for the packed items. You can view this data on the order page and in exports.

• Unit Cost: The specific per-unit COGS for the item at pack time.

• Total Cost: The summed COGS for the line item.

• Profit: Total Revenue minus Total Cost, Label Cost, and Insurance.

To establish a baseline valuation, you must choose a migration strategy for existing inventory when enabling Cost Tracking.