A cost estimate type is a definition of how costs should be estimated for an item; these estimated costs are used to calculate the estimated gross profit for the item. A default cost estimate type is defined on the Inventory subtab of item records, users with permission can change the cost estimate type per line item on transaction forms.
The Cost Estimate Type determines what value NetSuite uses to calculate estimated Gross Profit. The estimated Gross Profit for Items on a transaction provides the data needed to calculate the total estimated Gross Profit on that transaction. The individual line items that we enter in a transaction determine the amounts that post in NetSuite when we process that transaction.
When we enable the Gross Profit feature, one or more cost estimate types become available for each item type. NetSuite automatically assigns one of the cost estimate types as the default on item records.
All cost estimate types are not available for all types of items. The following table lists item types, with their available and default cost estimate types.
To reasonably estimate gross profits, companies collect information about costs at each item line level of a transaction. The method used to estimate costs is defined in the Cost Estimate Type field. A cost estimate type defines how costs should be estimated for an item; these estimated costs are used to calculate the estimated gross profit for the item. No single costing source is the best source to use across all items. For this reason, NetSuite provides several different cost estimate types.
With the Gross Profit feature enabled, one or more cost estimate types become available for each item type. The Cost Estimate Type field is on the Sales/Pricing subtab of item records. A default is assigned to each item record according to its type. Some types of items allow the selection of a non-default cost estimate type.
Cost Estimate Type
A cost estimate type is a definition of how costs should be estimated for an item; these estimated costs are used to calculate the estimated gross profit for the item. A default cost estimate type is defined on the Inventory subtab of item records, users with permission can change the cost estimate type per line item on transaction forms.
The Cost Estimate Type determines what value NetSuite uses to calculate estimated Gross Profit. The estimated Gross Profit for Items on a transaction provides the data needed to calculate the total estimated Gross Profit on that transaction. The individual line items that we enter in a transaction determine the amounts that post in NetSuite when we process that transaction.
When we enable the Gross Profit feature, one or more cost estimate types become available for each item type. NetSuite automatically assigns one of the cost estimate types as the default on item records.
All cost estimate types are not available for all types of items. The following table lists item types, with their available and default cost estimate types.
To reasonably estimate gross profits, companies collect information about costs at each item line level of a transaction. The method used to estimate costs is defined in the Cost Estimate Type field. A cost estimate type defines how costs should be estimated for an item; these estimated costs are used to calculate the estimated gross profit for the item. No single costing source is the best source to use across all items. For this reason, NetSuite provides several different cost estimate types.
With the Gross Profit feature enabled, one or more cost estimate types become available for each item type. The Cost Estimate Type field is on the Sales/Pricing subtab of item records. A default is assigned to each item record according to its type. Some types of items allow the selection of a non-default cost estimate type.
The Cost Estimate Type determines what value NetSuite uses to calculate estimated Gross Profit.The estimated Gross Profit for Items on a transaction provides the data needed to calculate the total estimated Gross Profit on that transaction. The individual line items that you enter in a transaction determine the amounts that post when you process that transaction.
The following Cost Estimate Types on Items are available:
- Item Defined Cost – a user-defined amount, entered into the Item Defined Cost field on the Item definition page.
- Average Cost – NetSuite calculates the average cost of the units purchased.
- Last Purchase Price – This field displays the most recent purchase price of the item as determined by purchase order receipt transactions.
- Purchase Price – The price entered that you pay for this item. If you do not enter a price, then the most recent purchase price from purchase orders provides the price for this item by default.
- Preferred Vendor Rate – This option is only used if the Multi-Vendor feature is enabled and multiple vendors supply the same item.
- First priority is to use the preferred vendor rate if defined on the Item record.
- The next priority would be to use the purchase price.
- The last priority would be the purchase order rate. (Initially, this uses the preferred vendor rate cost, and then after a purchase order is entered, this type uses the most recent actual purchase order rate. Special orders and drop-shipped items use this cost information.)
- Derived from member items – Total costs of items currently included in a kit. This Cost Estimate Type only applies to kits and sums the estimated costs of each item in the kit, based on each of their individual Cost Estimate Types. Uses the latest definition of the kit, not its historical definition.