How to Allocate Costs (indirect, direct costs)

Topics Covered

Overview Video: Components of Wine Production Costs

How to add or remove costs (indirect, as overhead costs)



Costs can be added or removed at any time to active or archived juice/wine lots or even case good lots. Whether it's a one-time cost that needs to be allocated to a single lot, an overhead that needs to be capitalized across many lots, or an adjustment to reconcile specific lot costs, you're able to do so with the 'Add/Remove Cost' action.

To begin, from the Costing icon $ in your left navigation, select the button "Add/Remove costs" in the upper right of the COGS Tracking Explorer:

Complete the form, filling in the fields for the Category of overhead expense, any details about the cost (such as the period covered), and the total amount to apply across lots.

For the Effective At section, you have the option to apply the costs to inventory as of today, or work with the inventory as of a date in the past. In the case below, December overhead is being applied to the inventory as of the end of the month, December 31st at 11:59pm.

When you click to select the lots, the header confirms you're viewing inventory as of the date specified. You can use the filters to narrow down the list of lots, if needed. 

Default filters: The Lot Type filter defaults to Juice/Wine lots, but is multi select, and can be set to include Case Good and/or Fruit Lots. The Lot Contents filter defaults to  display only lots with contents.  If you want to remove cost from empty lots, you can change this filter to include lots with no contents.

Once your lots are selected, you'll assign how much cost to allocate to (or remove from) each lot. You can do this manually, entering in the cost for each lot, or you can use the 'Lot Cost' blue drop down link (scroll down to the next image for reference). Your options here depend on whether you are adding or removing costs:

Adding Cost

  • (most common) Distribute proportionally across volume - Distributes the 'Total item cost' across the lots proportionally based on the volume displayed 
  • Set all costs to zero - Clears the existing cost data in the column
  • $/lot - Apply the same dollar amount to each lot, pre-filling that amount down the column (in this case it may be helpful to go back and update the Total Item cost after)
  • $/gal - Apply the same dollar amount to each gallon based on each lot's volume displayed, pre-filling that amount down the column (in this case it may be helpful to go back and update the Total Item cost after)

Removing Cost

  • Current category cost - Automatically populates the entire cost from the selected cost category on the selected lots (in order to remove it)
  • Set all costs to zero - Clears the existing cost data in the column
  • $/lot - Remove the same dollar amount from each lot, pre-filling that amount down the column (in this case it may be helpful to go back and update the Total Item cost after)
  • $/gal - Remove the same dollar amount per each gallon based on each lot's volume displayed, pre-filling that amount down the column (in this case it may be helpful to go back and update the Total Item cost after)

When removing cost, you can only remove costs existing in the selected cost category at the selected point in time. Utilize multiple remove cost actions to remove cost from multiple cost categories. 

Tip: If the lot cost is applied per lot or per gallon, then leave the Total cost field blank and fill in the total after the lot costs are determined - InnoVint does the math for you! 

For this example, we distributed the total cost proportionally by volume. The result is below.

Once completed, click on Add (or Remove) costs; the cost items are created, and the action will appear at the top of the Cost Item Report:

You'll also see the Costing tab on each lot's detail page update as well. 

Click on Show deltas to see the actual cost change per line item. Here is the added overhead on a specific lot:

Here is an example of a removed cost, in the case of re-allocation of bleed volume:

NOTE! If you remove costs from one of our direct categories (fruit, packaging & additives), this will not modify the input cost on the actual fruit/packaging/additive cost. It only removes it from the specified lot. Remove cost functionality can be described as a 'pencil and eraser' approach: users can remove (erase) cost on a lot(s) and add (pencil in!) the cost on a different lot(s).

Note, that if the cost item is backdated and there have been movements or other activities that will affect the cost of the lot (and others thereafter), the cost will flow through those actions to catch up to present day volumes.

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Assigning Direct Costs - Fruit and Packaging


Assigning Fruit Costs to Vineyard Blocks

Whether your winery is farming estate vineyards or sourcing fruit from other growers, the cost of each vineyard block or the price of the fruit can be applied at any time in InnoVint. These costs will be distributed to the lots that inherit composition from these blocks.

This cost or price assignment is applied per vintage to all fruit brought in via the Receive Fruit action. Direct fruit costs can be added or edited at any time, before or after the fruit has been received. Direct fruit costs are applied to a lot on a unit basis at the time of the Process action (ie Process to Volume and Process to Weight).

There are three methods to enter in your direct fruit costs:

  • Fruit Cost Worksheet - to apply costs/prices to many blocks at once (recommended: the most efficient, also ideal for estate fruit)
  • Vineyard Contracts - to set costs/prices within a vineyard contract (ideal for contracted fruit)
  • Vineyard Explorer - to edit or apply costs/prices to one block at a time

Note: Costs added or updated via any of these direct cost methods will be reflected across the platform. For example, if costs are added in a Contract, it will also display those same costs in the Fruit Cost Worksheet and under the Vintages tab in the Block details page. Costs entered in the Fruit Cost Worksheet or in the Vintages tab will update the costs in the Contract (if one has been created). For costs entered via any of these methods, InnoVint will use the most recent entry to update the other(s).


Alternative method: Fruit costs can also be applied to a lot as an overhead cost item, rather than entering costs on the block level, using the cost category, "Fruit (Cost Item)", using the indirect cost entry method outlined above


Assigning Costs using the Fruit Cost Worksheet

This tool is valuable for fast and easy data entry of all your fruit costs for the coming vintage. The fruit cost worksheet allows you to work with costs from the previous vintage, or set new costs per vineyard block.

To navigate to the Fruit Cost Worksheet:

From here, the previous vintage cost can be viewed. These costs can be copied to the current vintage or new cost information can be entered per block.

Looking for an unlisted vintage? Check out the url to update the vintage. In this case, replace 2023 with 2022 to access the 2022 Fruit Cost Worksheet:

From the blue 'NEW [YEAR ] COST' drop down, your selection options are:

    • Previous vintage - copy costs from the previous vintage to the current/new vintage
    • $ [   ] Apply - enter a value to apply to the entire worksheet, and across all pages

Your unit options are:

unit options

    • Previous vintage - copy whatever unit was used from the previous vintage
    • per acre - cost is set based on the total acreage of the block ("Area" must be set on the block for this unit to calculate accordingly)
    • per ton - cost is set based on the total tonnage received from that block
    • per block - cost is flat (regardless of acreage or tonnage) for the fruit received from that block 

Once a value and unit are selected, the row will highlight green, indicating that the cost has been changed and will be applied:

Once applied, you'll see the current vintage 'cost' column update, as well as the current vintage 'Est. Total Cost' column, if the system can calculate the expected cost of that block based on average yields. This value is great for budgeting purposes to help understand cash flow for the given year.

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Setting Fruit Costs in a Vineyard Contract 

This section generally outlines how to access contracts for adding fruit costs.  Find the full article on How to Manage Vineyard Contracts here.

Contracts require activation of both Finance and Grow modules. Reach out to for more information. 

To begin, click on  vineyards icon   in the left navigation bar. Then go to the Contract Explorer. 

Go to add contract in the top right corner of the Contract Explorer.

Under Vineyard, blocks and vintages: For each block and vintage, enter the cost and select the unit (per ton, acre, or block). If you enter a price per ton, also enter the contracted tonnage.

If the cost and unit remain consistent across vintages, click on Apply to all vintages.



Assigning & Editing Fruit Costs in the Vineyard Explorer

Block costs can be applied, edited, and removed via the Block Details page as well.

To navigate here: Go to  vineyards icon  in the left navigation bar and go to the Vineyard Explorer. Select a vineyard, then, select a block. In the Block details page, go to the 'Vintages' tab.

fruit costs in vineyard explorer

If the vintage exists, you can click on 'edit cost' to set, edit, or delete the cost information. If it does not exist yet, you can click "Add vintage" to add that year, then set the cost.

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Assigning Costs to Dry Goods (Direct Costs - Bottling Packaging & Additives)

Costs for dry goods inventory can be set in the 'Receive' action of a dry goods batch. As dry goods are used and depleted from inventory, InnoVint directly applies the associated cost per unit of the batch to the appropriate lot(s). In the case of additives, the cost is proportionally distributed downstream to any and all lots that receive volume from the original lot. Packaging (direct) costs are applied to the finished goods costs at the time of bottling. To learn more about the cost distribution of dry goods, go to see system rules for cost distribution in InnoVint.

(Alternative method: Dry Goods costs can also be applied to a juice or wine lot indirectly as an overhead cost item, rather than setting the cost per unit of the dry goods batch. To add as a cost item, use the cost category of, "Packaging (Cost Item)" or "Additions (Cost Item)".)

Adding and Editing Costs in a 'Receive' Action

Direct costs can be added as part of a 'Receive Additive' or 'Receive Packaging' action by entering the amount received and total cost. InnoVint will then calculate the cost per unit/item of the received inventory. This unit cost will be applied to lots via any Addition or Bottling action that consumes the relevant batch.

Costs on a 'Receive' action can be edited at any time. So, if you are still waiting on that invoice, you can always add your dry goods inventory into InnoVint and edit the costs at a later time. (Just go to the Batch Details page to find the 'Receive' action in the batch history.)

Any time that costs are added or edited on a 'Receive' action, all related actions involving the batch will update with the new costs. For example, if an additive batch was used last week for an addition but the costs were entered this week, the associated cost of the addition from last week will update to reflect the changes. (Note: You might not see the cost change immediately upon editing. It may take some time for InnoVint to recalculate the new costs.)

Calculating Costs per Batch

The total cost per batch is the sum of all costs entered across all 'Receive' actions recorded on the batch. InnoVint uses the total cost per batch and the total amount received to determine the cost per item/unit of the batch.

Here's an example using an Additive:

  • 20kg of Tartaric Acid, Batch X was received on Jan. 1, 2021.
    • The total cost of the 'Receive' action was $100.
    • The calculated cost per unit of the 'Receive' action is $5/kg.

Assume that several additions were made using Batch X.

  • Then, on June 15, 2021 an additional 50kg of Tartaric Acid was received into Batch X.
    • The total cost of the second delivery was $197.50.
    • The calculated cost per unit of the 'Receive' action is $3.95/kg.

At this point, Batch X has received a total of 70kg for a total cost of $297.50.

  • The new cost per unit for Batch X is $4.25/kg.

In this scenario, all previous and future additions will apply a cost of $4.25/kg. Additions recorded before June 15, 2021 will update to reflect the change.

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Additional Resources


Q. My overhead cost item and bond transfer out have the same date and time, but the cost didn't get removed with the lot! Help!

A. Have you ever wondered about how InnoVint orders cost distribution if a cost action is entered with the same "effective at" date and time as an action moving volume out of the same lot? We did! And determined that the correct order of cost application (for one or more cost actions or movements occurring with the exact same "effective at" date and time) is according to the actual time of action submission (the date and time of data entry).  So, if you are backdating cost actions and movement actions to the same date/time, always be sure that cost items are entered first. 

In your case, it sounds like the cost item was added with the same "effective at" date and time as the B2B Out action, but was submitted in InnoVint after the wine movement. Consider editing the cost item timestamp to a minute prior to the timestamp on the B2B action. This will "break the tie" in your favor. After the lot costs update, the cost will move with the action as intended.

Q. What if I don't want to use the average cost per batch? (eg I received a second delivery of Batch X at a much higher cost and want to keep the costs separate from the first delivery.)

A. Our best recommendation is to create a new batch to accommodate separate costs. The manufacturer batch ID can remain the same, but the batch ID must be unique within the product. cost.png

Q. Can I add a cost after I've already received the Dry Good?

A. Yes, costs can be added to Dry Goods after the batch has been received and partially depleted. To add a cost, find the "Receive Dry Good" action in the batch history. Click "Edit action" in the upper right-hand corner of the action. Only Admins on the account can edit this action. Enter a cost for the whole batch into the "Total Cost" input field and "Update Receive Dry Goods action" to save these edits.

This will apply costs across all depletion actions for that batch. 

Alternatively, an Admin can "Receive more" of a single batch of a particular Dry Good to add costs. Enter in "Zero" in the amount received, and the cost of the batch into the "Total cost" field. 

This will retroactively apply costs to all depletion actions for the history of that dry good. 

 Q. My saignée should carry a lower cost value than the lot it was bled from. How do I record a Bleed/Saignée without distributing cost to the bleed lot?

A. We hear similar questions from users who want to "devalue" specific lots, such as lees lots or press cut lots.

The way InnoVint costing works is that any lots created from another lot inherit cost proportionate to the volume. Typically this is just fine, but sometimes we create lots that we want to carry a lower costs than the originating lot, such as bleed lots, lees lots or even press cuts. 

To accommodate this, you can use the Remove cost function to remove the unwanted cost in all cost categories from a "devalued" lot. Be sure to add any removed costs back into the higher value "mother" lot using Add cost (see section above on adding or removing indirect costs).  Be sure to use the Notes field to reference or link lots as necessary. It’s recommended that adjustments to remove and then add back costs to the mother lot occur on the same date, which should be just after the action that distributed the costs originally. For example, select the same date, and a time just after the Bleed/Saignée action occurred. This ensures the cost changes flow correctly through all subsequent activities on the involved lots.

An alternative that is specific to the Bleed/Saignée action is to not use the Bleed/Saignée action. Instead, create a new lot code from the Lot Explorer "Add Lot" button (tax class should be "Fermenting Juice"). Then record a Volume Adjustment on that lot to "gain" the proper bleed volume into the right vessel. Add a note to the action indicating that this is the bleed/saignée. The last step here is to update the expected yield on the drain lot to reflect the bleed. This only matters if you utilize our "calculated amounts" within the addition action. 
By doing it this way, your team can completely control the cost applied to bleed lots by applying a Cost Item later.

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