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How to Utilize Unit Costs

How to Utilize Unit Costs

Learn how to add unit costs and why they are helpful

Jared Ward avatar
Written by Jared Ward
Updated over 2 years ago

What?

Unit costs represent the cost of a product. In Luminous, they can be calculated off of past purchase orders/quotes or input manually.

Why?

This is a major part of understanding how profitable your business is. Making decisions is much easier when you know the margins on each product you buy and sell.

How?

  1. To Manually Set Unit Costs (Material Costs): "Inventory" -> "SKUs"

2. Click to Edit SKU

3. For Basic Unit Cost Input:

4. More In-Depth Material Cost: Click into SKU

5. Add Applicable Data

Note - Computed Material Costs are computed from data within written purchase orders for the product. You can click "Recompute Material Cost" if you believe the numbers are out of date or manually set the material costs.

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