The Product Cost Report (PCR) is a downloadable report that provides Weighted Average Cost (WAC) data for all items in your inventory. This report is available to all users whose selected inventory costing method is WAC. 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 for the Product Cost Report is available for all users whose selected costing method is WAC. If your business is on an Accelerate or Elevate plan and not using the A2X integration or pushing landed costs to Shopify, you have the flexibility to choose your costing method (WAC or Batch-based). Launch tier customers are automatically set to WAC and will see the PCR. Accelerate & Elevate customers with an A2X connection or who are pushing landed costs to Shopify will be automatically set to WAC and will see the PCR.
👉 Read more about Reports in Settle.
How are costs calculated? WAC vs FIFO
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
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.
Choosing & managing your costing method
Settle allows brands to manage their costing methodology—WAC, FIFO, or Batch-Based—directly in-app. Go to:
Settings > Procurement
From there, you can review and update your costing method. Any updates take effect on the first day of the following calendar month.
Please note: Brands using Shopify landed cost sync or integrated with A2X are limited to WAC, as that’s what those integrations support.
How often does it update?
The Product Cost Report updates nightly at 23:00 UTC, incorporating the latest data from:
Purchase Orders
Work Orders
Inventory Transfers
It reflects WAC averages based on a rolling 365-day window, ensuring accurate and timely cost information.
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.
Why am I seeing the Product Cost Report instead of the End of Month (EOM) Inventory Report?
Your report visibility is tied to your selected inventory costing method. The Product Cost Report is displayed if your costing method is set to Weighted Average Cost (WAC). If you are on an Accelerate or Elevate plan and not integrated with A2X or pushing landed costs to Shopify, you may be able to change your costing method to Batch-based Landed Cost to access the EOM report.