Why is my inventory coming out at the wrong cost?
Quick Answer
Your items have a standard cost, or their average costs have changed.
Overview
When using or removing items from stock, they may not be coming out at the price you expect them to.
When this happens, it's important to work out why this is the case, and if any action needs to be taken.
Process
What should the costs be?
The first step to determining if inventory is coming out at the “wrong cost”, is to confirm what the actual costs should be. Make sure to check your inventory reports to see what the current costs of your items are, and compare them to what they were historically.
You may even find that the inventory is coming out at the correct cost, but that cost is different than what you had expected due to a Stock revaluation, Bill of materials changes, or any number of other reasons.
Is this a stock or non-stock item?
The next step is knowing how to price of the items is determined.
If your item is a non-stock item:
- It will always be used at its standard cost (Std Cost ($) field on the Inventory form).
If your item is a stock item:
- If it has a standard cost defined, it will come out at its standard cost (Std Cost ($) field on the Inventory form > General tab).
- Otherwise, it will be come out at its average cost of the warehouse it is being taken from (Avg Cost ($) on the Inventory form > Warehouses tab).
Did you find this article helpful?
If this article is missing information, ambiguous or didn’t give you clear instructions, let us know and we will make it better! Please email us and quote the KB# in the top right of this article to let us know why it didn’t help you out and we will point you in the direction of additional information.
Last edit: 18/09/2026