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Understanding unit cost

This topic describes unit cost.

Unit Cost identifies or captures the cost of producing a product with the intent to sell. There are two places where this field exists within the Admin Console, at the Product level and the Product Warehouse level.

The Product Unit Cost field is found on a Product's Detail finger tab. By default it is hidden, but can be exposed using the Master Edit Mode or the Application Dictionary. It is used in conjunction with various B2B Commerce Cloud features, such as Promotions, Pricing, and Request for Quote (RFQ). The Unit Cost field is essential when Promotions or RFQs are based on a margin of profitability based on the product cost of production. Therefore it is typically populated through an ERP integration and hidden to prevent unintended changes.

The Warehouse Unit Cost field, is found in the Product record within the Warehouses finger tab. It is used to distinguish the production costs of a product by individual warehouse. This Unit Cost field is not connected to other B2B Commerce Cloud features, such as RFQ, but can be used for Pricing. This field is customizable if increased functionality is desired.

The Unit Cost is most frequently used in conjunction with commodity based products. For example, the cost of certain materials are dependent upon where they are processed. So, a warehouse on the West Coast would likely have different pricing than a warehouse on the East Coast.Therefore it would be necessary to use the Warehouse Unit Cost field, as they pricing would be different for each warehouse.

Viewing the product Unit Cost field

For reference, the following provides the steps to view both field locations:

Assuming the Master Edit Mode is enabled or the Application Dictionary has been updated to expose the field, use the following steps to view the Product Unit Cost field:

  1. Admin Console > Catalog > Products.
  2. Click Edit for a product.
  3. In the Details finger tab, scroll down to the Pricing section and view the Unit Cost field.

Warehouse product Unit Cost

Use the following steps to view the Warehouse Product Unit Cost field:

  1. Admin Console > Catalog > Products.
  2. Click Edit for a product.
  3. Click the Warehouses finger tab.
  4. Click Edit of a product.
  5. View Unit Cost.


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