# Estimated Cost Margin
Estimated Cost Margin sets per-item estimated cost for profit reporting — either as a margin percentage off reference costs or as a direct estimated cost value. Values sync to Basic Pricing when the estimated cost columns are enabled there.
Overview & List View
Go to Sales → Settings → Estimated Cost Margin from the left menu.
Server calculation. Reference costs, By Value, and enquiry-style estimated cost are calculated on the server (same rules as Item Enquiry). The screen displays API values; you only edit margin %, By Value, or Est. cost (value).
List columns
| **Column** | **Description** |
|------------|-----------------|
| Item Code | Item identifier. Click for item quick view. |
| Item Name | Item description. |
| Last Purchase Price | Most recent purchase rate for reference. |
| Last Purchase Date | Date of last purchase. |
| Avg Inventory Value | Average inventory unit value for reference. |
| Set Margin (By % / By Value) | Margin mode and value for estimated cost. |
| Est. cost (value) | Calculated or entered estimated cost. |
Filters
| **Control** | **Description** |
|-------------|-----------------|
| Item Group | Optional filter. Click Generate to load items in the selected group. |
| Brand | Optional filter. Limit the list to one brand. |
| Item | Optional filter. Load a single active item. |
| Apply % to all rows | Bulk-apply a margin percentage to every row on the current page. |
List widgets
| **Widget** | **Description** |
|------------|-----------------|
| Priority color-coding | Highlights rows where estimated cost differs from reference costs. |
| Item quick view | Click an item code to preview the item. |
| Pagination | Navigate large item lists page by page. |
Estimated Cost Margin
Fields
| **Column** | **Description** |
|------------|-----------------|
| Item Code / Item Name | Item identifier and description. Click for quick view. |
| Last Purchase Price | Most recent purchase rate for reference. |
| Last Purchase Date | Date of last purchase. |
| Avg Inventory Value | Average inventory unit value for reference. |
| By % | Estimated cost margin percentage. Green highlight when margin % drives the cost. |
| By Value | Estimated cost from margin %, calculated on the server (rounded to 2 decimals). Matches Estimated Cost on Item Enquiry when margin % drives the cost: average inventory value × (1 + margin % ÷ 100) when in stock, or last purchase price × (1 + add-on % ÷ 100 + margin % ÷ 100) for zero-stock items when Show estimated cost on zero stock is enabled. Green highlight when margin % has priority. |
| Est. cost (value) | Direct estimated cost override. Amber highlight when this value takes priority over margin %. |
Filters & bulk actions
| **Control** | **Description** |
|-------------|-----------------|
| Item Group + Generate | Load items filtered by group. |
| Brand | Optional — narrow the list to one brand before Generate. |
| Item | Optional — load one active item before Generate. |
| Margin % + Apply % to all rows | Set the same margin percentage on all visible rows. |
How It Works
Setting estimated cost
You can define estimated cost in two ways (per row):
- Margin % — enter By % directly, or enter By Value to derive the percentage. By Value is computed on the server when you click Generate (or after Update), using the same formula as Item Enquiry:
- Stock on hand — average inventory value × (1 + margin % ÷ 100)
- Zero stock (when Show estimated cost on zero stock is on) — last purchase price × (1 + add-on % ÷ 100 + margin % ÷ 100). Add-on % comes from Sale Settings → Price; margin % from the row's By % field.
Displayed By Value is rounded to two decimal places.
- Est. cost (value) — enter a fixed estimated unit cost. When filled, this takes higher priority than margin % for profit calculation and enquiry display.
Row highlighting indicates which method is active: green for margin-driven, amber for direct value priority.
Where estimated cost is used
Actions
| **Action** | **Description** |
|------------|-----------------|
| Generate | Loads items for the selected Item Group, Brand, and/or Item filters. |
| Apply % to all rows | Bulk-sets margin % on the current page. |
| Update | Saves all changed rows. |
| Export | Exports the grid to Excel. |
FAQ
Which takes priority — margin % or Est. cost (value)?
Est. cost (value) wins when filled. Otherwise margin % (from By % or derived from By Value) is used.
Can I filter by Brand or Item?
Yes. Use the Brand and Item filters (along with Item Group), then click Generate to load only matching rows.
Why is By Value blank for an item with no stock?
By Value is calculated on the server. With stock on hand it uses average inventory value; with no stock it uses last purchase price, but only when Show estimated cost on zero stock is enabled in Sale Settings → Price and the item has a recorded last purchase price on an approved purchase invoice. If the setting is off, or there is neither stock nor a last purchase price, By Value stays blank.
Why does By Value on this screen differ from Item Enquiry?
It should match when the same margin % applies and Est. cost (value) is not set on the item. Both use the server formula above. If Item Enquiry shows a value but By Value is blank, click Generate again after saving Sale Settings. If Est. cost (value) is filled on the row, that fixed amount takes priority on enquiry screens instead of the margin-derived value.
How many decimals does By Value show?
By Value is rounded to two decimal places (same display precision as estimated cost on Item Enquiry).
Does this change inventory valuation?
No. Estimated cost is for sales profit reporting and under-cost validation only — not for inventory GL valuation.
How does this affect profit reports?
Profit Reports use estimated cost when item ledger cost is unavailable or as configured for margin display.
What happens when Prevent under cost sale is enabled?
Sale approve can be blocked if the line rate is below item cost or estimated cost. Keep margins realistic on fast-moving items.
Should I use percentage or fixed estimated cost?
Use percentage for category-wide defaults. Use fixed value when you know landed cost for a specific SKU regardless of sale price.
Does estimated margin update old invoices?
No. Changes apply to new bills and profit reports going forward. Posted invoice profit is based on cost at approve time.