Skip to content
logo Knowledgebase

How to add labour or shipping costs to inventory items?

Created on  | Last modified on 

Summary

Inventory needs to include labour costs, shipping, freight and or extra costs related to assembled inventory (Bill of Materials - BOM) items and or Cost of Goods Sold (COGS).

Description

Cause

Resolution

Method 1: Add labor/shipping for item purchased.

Add the shipping cost to the original purchase cost(purchase price + shipping) , then sage will average the cost out per item.

Method 2: add labor/shipping cost directly in the cost of each inventory

  1. In the Home screen, go to Inventory & Services.
  2. Open the Build from Item Assembly window.
  3. under Assembly Components, add the inventory item you want.
  4. Add its quantity in the Qty column.
  5. under Assembled Items, add the same inventory item you want.
  6. Add its quantity in the Qty column.
  7. Change the Unit Cost to the higher unit cost that would include the labor/shipping cost.
  8. Click Post.
  9. This will adjust the cost for the inventory item to the newer cost.

Method 3: Add the cost to a separate cost account

  1. In the Home screen, go to Inventory & Services.
  2. Open the Build from Item Assembly window.
  3. under Assembly Components, add the inventory item you want.
  4. Add its quantity in the Qty column.
  5. under Assembled Items, add the same inventory item you want.
  6. Add its quantity in the Qty column.
  7. In the Additional Costs field, add the total labor/shipping cost.
  8. Click Post.
  9. This puts the extra cost into an expense account dedicated to inventory without affecting the inventory unit cost.