Component Costing Type
The Component Costing Type suits products where one primary component drives cost, so you avoid spreading logic across many parts unnecessarily. It locks to a single component and supplier relationship to keep negotiations and calculations focused. The template simplifies structures that would be noisy if modelled as multi-component retail or import costings.
- Simplify Complex Cost Structures: By focusing on the primary component that drives product cost, businesses can streamline their costing process and reduce complexity in scenarios where multiple components would add unnecessary overhead.
- Support Supplier Negotiation: With only one supplier allowed per costing (matching the single-component structure), businesses can engage in focused, direct negotiations without the complexity of managing multiple supplier relationships simultaneously.
Quick Check - Before You Start
- Confirm you need Component costing (one primary component, component details not editable after selection).
- Ensure a suitable component template, base currency, and terms exist in Site Settings > Costing > Template before creating the record.
- Plan which component to attach first—deletion is allowed, but re-selection should follow your approval workflow.
Single Component Limitation
Unlike Retail or Import costing types, Component Costing Types only allow one component to be added. Once selected, component details cannot be edited. This design ensures focus on the primary cost driver and maintains calculation integrity.
Details
The Details section establishes the foundational information for your component costing. This section is crucial as it defines the costing's unique identifier, description, and key financial parameters that drive all subsequent calculations.
For component costings, the Details section includes:
| Fields | Description |
|---|---|
| Costing No. | A unique identifier for tracking and reference. This can be edited. |
| Description | A clear name that identifies the purpose of the costing. This can be edited. |
| Costing Type | Set to "Component" to enable component-specific calculations. This cannot be edited once selected from the Create New Costing pop-up. |
| Template | The pre-configured component costing template that determines calculation structure. Users cannot change the template once selected. To configure the templates, go to: Site Settings > Costing > Template. |
| Account Manager | The team member responsible for managing this costing. This can be edited. To configure the names in this list, go to: Site Settings > Company > Staff. |
| Base Currency | Your primary business currency (typically AUD for Australian businesses). This is dependent on the template being used. To configure the base currency for the template, go to: Site Settings > Costing > Template and edit the Base Currency field. |
| Terms | The trade terms (e.g., FOB, CIF) that govern the purchase. This cannot be edited once selected from the Create New Costing pop-up. |
| Purchase Currency | The currency used to pay suppliers. This cannot be edited once selected from the Create New Costing pop-up. |
Template Selection
Selecting the correct Template is essential for component costings, as it determines the structure of calculations. Ensure your administrator has configured appropriate component templates in Site Settings > Costing > Template.
Customer
The Customer section in a Component Costing Type is configured based on the pricing model defined in your costing template. Component costings can support both retail and wholesale pricing structures, depending on your business needs.
The Customer section includes:
| Field | Description |
|---|---|
| Customer | The client or business entity for whom the costing is being prepared. This can be edited. To configure the list of the names of customers, go to: Site Settings > Company > Customer. |
| Arrival Zone | The delivery zone for the customer, which may influence freight costs and logistics planning. This can be edited. To configure the arrival zones, go to: Site Settings > Company > Arrival Zone. |
Internal
The Internal section captures the financial parameters that drive your internal profitability analysis and pricing strategy. The fields displayed here are determined by your selected costing template configuration and are essential for calculating accurate landed costs and ensuring your pricing aligns with business objectives.
The Internal section includes:
| Field | Description |
|---|---|
| Finance Cost | The cost of capital or interest allocated to financing the production of goods. This value is automatically populated from the costing template and cannot be edited here. To configure this value, go to: Site Settings > Costing > Template and edit the template's Finance Cost field. |
| Production Overhead | Fixed or variable costs associated with production, excluding direct materials and labour. This value is automatically populated from the costing template and cannot be edited here. To configure this value, go to: Site Settings > Costing > Template and edit the template's Production Overhead field. |
Template Dependency
The specific fields available in the Internal section depend on your costing template configuration. Component templates may be configured with different internal financial fields depending on whether they use retail, wholesale, or hybrid pricing models. Consult your administrator to understand which fields are included in your component template.
Duty and Freight
The Duty and Freight section captures all logistics-related expenses required to transport products from the supplier to your warehouse. For component costings, accurate freight and duty calculations are essential for determining the true landed cost of goods, which directly impacts pricing decisions.
The Duty & Freight section includes:
| Field | Description |
|---|---|
| Freight In | The cost of freight for the goods. This can be edited. To configure the available freight options, go to: Site Settings > Costing > Freight. |
| Port and Disbursement | Additional port fees and disbursement charges. This value is automatically populated based on the selected Costing Template and is not editable here. To configure this value, go to: Site Settings > Costing > Template and edit the template's Port and Disbursement field. |
Template Dependency
The Port and Disbursement costs are automatically applied from your selected costing template. Ensure your templates are kept current to maintain calculation accuracy.
Components
The Components section is the core of the Component Costing Type, as it defines the single primary component that drives the product's cost structure.
Key features include:
- Single Component Only: Unlike Retail or Import costing types, Component Costing only allow one component to be added.
- No Editing After Selection: Component details cannot be edited once added, ensuring calculation integrity and preventing accidental changes.
- Deletion Allowed: The component can be deleted if needed, allowing you to select a different component by clicking the (+) plus icon next to Components.
Choosing the Right Component
Since only one component is allowed, carefully consider which component is the primary cost driver for your product.
Supplier
The Supplier section enables collaboration with external suppliers for component costings. This feature is essential for obtaining quotes and managing supplier relationships throughout the costing process.
These are the following features for the Supplier section:
- Multiple Suppliers: Component costings support selection of multiple suppliers. This enables the user to compare and contrast various figures like Supplier Quote and Quantity to ensure that the most suited supplier is selected.
- Individual Comments Thread: Communicate with the supplier through private comments thread.
- Quote Management: The supplier can submit multiple quotes per colourway.
- Approval Workflow: The supplier quote must be approved before the costing can be marked as complete.
- Choose Columns: Customise the table view by selecting which columns to display. The Factory column is required and cannot be deleted. Even if you remove all other columns, the Choose Columns toolbar remains accessible, allowing you to add columns back at any time. When un-selecting all columns, the pop-up will remain open until you manually close it, giving you the opportunity to review your selection before confirming.
Troubleshooting
Why is the component locked and I cannot change it?
Once a component is selected and costing data has been entered, changing the component may be restricted to protect existing cost calculations and supplier quotes.
Steps to resolve:
- Check whether the costing has been submitted for approval or marked as complete
- If the costing is in draft, you should be able to delete the component and add a new one using the (+) icon
- For completed costings, consider duplicating the costing and selecting the correct component on the new version
Why are supplier quotes not appearing in the costing?
Supplier quotes must be submitted by the supplier through their portal or entered manually. If no quotes appear, the supplier may not have been invited or may not have submitted yet.
Steps to resolve:
- Verify the supplier has been added to the Supplier section of the costing
- Check that the supplier has portal access and has been notified
- Use the Comments thread to follow up with the supplier directly
Why is the costing template not applying the expected currency or terms?
The costing template defines the base currency and purchase terms. If these appear incorrect, the template configuration in Site Settings may need to be reviewed.
Steps to resolve:
- Navigate to Site Settings > Costing > Template and verify the base currency
- Check that purchase terms match what you expect for this costing type
- If the template was recently changed, existing costings may retain the old values -- only new costings pick up template changes