What is the difference between price, standard cost, and supplier cost?

Updated on November 21, 2016 05:39am by Admin

The item can have both price and standard cost with it. The supplier cost specifies the cost to your business.
create-item

Price

The "Price" field is to enter selling price of an item in Items App. When creating invoice, estimate, orders, work orders etc the item price value will be fetched from "Price" field. For instance: Creating invoice for an item as shown in the image:
item rate

Standard Cost

You can just enter the standard cost of the item i.e buying price for you reference. It’s not used in purchase orders, just some optional information when viewing the item list.

Supplier Cost

This is the cost to your business, when you purchase a product from the supplier. You can have an item with 1 price, but then link to many suppliers, and each supplier has a different supplier cost.

Supplier item with supplier cost

Before creating purchase order you need to associate an item to a supplier and mention the "Supplier Cost".
supplier cost

When you create purchase order for your supplier, this supplier cost value will be auto filled when you select an item associated with that supplier. 
unit price