Assigning Costs to Dry Goods (Direct costs)

Costs for dry goods inventory can be set in a '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 this article about the 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 detail this option, click here.)

This article covers:

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 calculate the cost per unit/item of the received inventory.

Costs on a 'Receive' action can be edited at any time. So if you are still waiting on that invoice, you can always submit the action to add your 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.)

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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.

Example:

  • 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.

FAQ

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.

https://f.hubspotusercontent00.net/hubfs/6865708/batches cost.png