The Product Cost Report (PCR) is a downloadable report that provides Weighted Average Cost (WAC) data for all items in your inventory. The PCR is designed to simplify product costing by offering an accurate, up-to-date view of your production costs over time. This tool is independent of inventory quantities and is focused solely on providing cost insights based on purchase orders, work orders, and additional 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.
Note: The download option is available only for users on Working Capital and Launch.
👉 Read more about Reports in Settle.
How are costs calculated? WAC vs FIFO
The Product Cost Report uses Weighted Average Cost.
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 UnitsWAC=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
First-In, First-Out (FIFO)
FIFO tracks costs based on the sequence of purchase events, assigning the oldest purchase price to inventory used or sold first.Key Difference: WAC smooths fluctuations by averaging costs, while FIFO preserves cost chronology. WAC is used in the PCC as it provides a simpler, more stable view of production costs.
👉 Read more about FIFO COGS.
How often does it update?
The Product Cost Catalog updates nightly at 23:00 UTC to include the latest data from purchase orders, work orders, and inventory transfers. This ensures that your cost information is accurate and reflects the most recent transactions.
How is this different / similar to the EOM Inventory report?
Feature | Product Cost Catalog | EOM Inventory Report |
Focus | Provides WAC for SKUs | Inventory quantities and values at month-end |
Data Source | Purchase Orders, Work Orders, Allocated Expenses | Purchase Orders, Work Orders, Allocated Expenses, Sold Items, Inventory Items |
Frequency of Update | Nightly (23:00 UTC) | Monthly (at month-end) |
Purpose | Costing insights and tracking | Inventory reconciliation |
Plan | Working Capital & Launch | Accelerate & Elevate |
While the PCC is tailored for cost-tracking purposes, the EOM Inventory Report focuses on inventory valuation at a specific point in time. Each report has a distinct use case.
👉 Read more about the EOM Inventory Report.
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.
👉 Read more about FIFO-based Costs.