Cost Price of an SKU is the cost you as a seller incur in buying it from your supplier. It is a field found in two places in the system
- Cost Price on SKU – used for general reference, margin estimates and also as a default value for Supplier SKU Cost Price
- Cost Price on Supplier SKU – used for supplier specific reference and purchase order creation. The same SKU can be purchased from multiple suppliers at different cost prices.
Cost price on the SKU and Supplier SKU can be updated directly as well as while receiving your purchase orders.
Order Margin is essentially = Selling Price – Cost Price for a transaction. It is stored at each order item level and can be tracked as a reports value in the Orders Report. Given that Primaseller allows multiple suppliers to supply the same SKU, we use the cost price on the SKU at the time of the transaction creation for Margin estimates instead of the Cost Price on Supplier SKUs.
This may not reflect accurate margins for items who prices change drastically during every purchase (because you may still be selling old stock purchased at an older cost price while your SKU may reflect the latest cost price).
However, for all other cases, it is a very good measure of the margins on each sale and an important parameter for you to track.