Note: The term "Inventory Value" refers to the dollar amount that a unit of a Master SKU is worth. Inventory Value is recorded as the Cost of Goods Sold (COGS) once the order has been shipped.

Inventory Value (IV) operates on a default basis. Skubana will refer to each option in this default order to determine IV. The default order is as follows:

  1. First In, First Out (FIFO) Landed Cost value for units received via a Purchase Order.

NOTE: The Landed Cost used for Inventory Value will incorporate any Aggregate Costs for the PO divided amongst the Total Units Ordered. Aggregate Costs do not include the automatically shown "Item Cost" amount, only any additional costs added. So in the example below, the total "PO Aggregate Costs" would be $75. The Purchase Order amount is $1,075.00.

2. The Default Vendor Product's "Cost" can be found in the Vendor Product. Skubana will use the top line quantity to calculate Inventory Value.

3. If there is no cost associated with the Vendor Product, Skubana looks for Vendor Cost in the product.

4. If Skubana cannot find any of the above for the product, IV and COGS will be shown as $0.

For instructions on how you can edit your IV queue, see this article on the Inventory Reconciliation feature.

Did this answer your question?