Standard cost
Standard cost stands for a value of an item. This value is used to determine total value of items in stock and can be used to calculate value of a transactions (see section Usage cost). There are two options, how standard cost can be set for an item:
- by average acquisition cost, or
- by purchase price.
The way of calculation is common for all items (it cannot be set differently for specific items) and can be set in system settings.
Standard cost is always shown in dispense unit of measure and in system currency.
By average acquisition cost
When this option is selected, standard cost is set as average cost to obtain additional item to production. It is calculated as average price of new items purchased and average price of service of items from production. Calculation is based on all purchase and service orders sent in past 180 days by following formula:
Total price from purchase orders is converted from purchase units to dispense units and from vendor’s currency to system currency with conversion ratio valid in time when order has been created. Standard cost then indicates cost of single dispense unit of an item.
If there are no purchase or service orders for an item in period of past 180 days, standard cost is set to current price per piece in the time of recalculation. For new items, standard cost is set according price per piece in the time when item is saved for the first time.
By purchase price
For this option, standard cost is set according current purchase price of an item. Any time the purchase price is updated on an item, the standard cost is also updated to reflect the new price.
Standard cost is recalculated to dispense units of measure and system currency using conversion ratio valid in time of purchase price change.
Purchase gross price does not affect the standard cost.
Recalculation of standard cost
Recalculation is used to reflect any changes which may affect the standard cost.
In case, when standard cost is determined as average acquisition cost, recalculation will check all orders in past 180 days as described in section above.
In case, when standard cost is determined as purchase price, standard cost is updated automatically with any change on purchase price. Recalculation will then reflect any later changes in currency conversion ratio between vendor’s currency and system currency (as standard cost is always in system currency).
After changing standard cost calculation, recalculation must be performed to reflect the new settings.
Recalculation of standard cost can be triggered manually or can be scheduled to be performed in specific time period automatically. To trigger immediate recalculation of standard cost, press Update Now ( 
) button in System settings -> Purchase tab, section Standard cost of items. In the same section, automatic recalculation if standard cost can be set.
Usage cost
Standard cost could be used to determine usage cost (=cost of pick) when item is picked. For consumable items each pick generates usage cost as 100% of standard cost. For durable items it is possible to define how usage cost is generated:
Percentage of standard cost of item
Usage cost is determined by percentage of standard cost of the item per dispense unit.
Fixed price per pick
Usage cost per dispense unit is manually set. Standard cost is not involved for this option.
Price per time of usage
Usage cost is calculated by time period when item was out in production (time between pick and return). Cost for this time period is manually set. Standard cost is not involved for this option.
Per item state
Usage cost depends on state of picked item. When picked item was new, usage cost is set to purchase price of the item per dispense unit. If item was refurbished, usage cost is set to service price of the item per dispense unit. If item was used, usage cost is zero. Standard cost is not involved for this option.
For assemblies, standard cost is calculated according all durable items used in that assembly