The Product Cost Report (PCR) is a downloadable report that provides Weighted Average Cost (WAC) data for items in your catalog.
The PCR is designed to simplify product costing by offering an accurate, up-to-date view of your production costs over time. This report focuses solely on cost insights based on purchase orders, work orders, and allocated expenses.
How to download
Navigate to the Reports section of your Settle dashboard.
Locate the Product Cost Report under the "Cost & Inventory" category.
By default, Settle will use the last 365 days for calculating your Weighted Average Cost.
Click Download CSV to receive a detailed breakdown of your WAC by Catalog Item and date.
👉 Read more about Reports in Settle.
How are costs calculated?
The Product Cost Report exclusively uses the Weighted Average Cost (WAC) methodology.
Weighted Average Cost (WAC)
WAC calculates the average cost per unit based on a rolling average of purchase orders, work orders, and allocated expenses.The formula for WAC is:
WAC=∑(Units×(Cost per Unit+Allocated Expenses))
Total Units WAC=Total Units∑(Units×(Cost per Unit+Allocated Expenses))
Example:
Jan 1: PO for 100 units at $1 → WAC: $1.00
Jan 2: PO for 100 units at $2 → WAC: $1.50
Jan 3: PO for 100 units at $3 → WAC: $2.00
WAC smooths cost fluctuations by averaging input costs over time, providing a stable and consistent cost basis.
How often does it update?
The Product Cost Report updates nightly at 23:00 UTC, incorporating the latest data from:
Purchase Orders
Work Orders
Allocated Expenses
It reflects WAC averages based on a rolling 365-day window, ensuring accurate and timely cost information.
FAQs
What if I can't find a particular item in the Product Cost Report?
In order to be included in the Product Cost Report, an item must exist in the catalog and have a baseline cost associated with it OR have one or more ordering documents (Purchase Orders or Work Orders) associated with it in the last 365 days.
👉 Read more on adding baseline costs to your catalog items.
Is this the same as COGS?
The Product Cost Report tells you the Weighted Average Cost, instead of FIFO-based Costs. The Weighted Average Cost can be used in your COGS methodology if tied to units sold.