ConnectBooks allows you to choose from multiple cost types when generating reports. These cost types determine where the system pulls the cost data from. Below is a breakdown of each option and how it works:
1. Default Cost
The Default Cost depends on your current system connection:
If you're using QuickBooks for inventory, ConnectBooks pulls the latest average cost from QuickBooks. If you've entered a cost on the Listings page in ConnectBooks, that cost will override the QuickBooks value.
If you're connected to a third-party integration like SellerCloud or Goflow, ConnectBooks uses the cost from that source. For transactions dated before the sync start date, it falls back to using the manual cost entered in ConnectBooks.
If you track inventory in the ConnectBooks Inventory System, it pulls from there, For transactions dated before the inventory file start date, it falls back to using the manual cost entered in ConnectBooks.
If you don’t track inventory in ConnectBooks, QuickBooks, or a third-party app, and you've manually entered costs in ConnectBooks, those manual costs will be used.
2. QuickBooks Latest Cost
This pulls the latest average cost from QuickBooks. It reflects the most recent cost calculation based on your QuickBooks data.
3. QuickBooks Average Cost
This option pulls the historical average cost of an item from QuickBooks. For example:
January: $1
February: $2
The cost shown in reports will reflect the historical cost from QuickBooks for the specific month or period of the transaction. This means we check the cost value from that exact time frame in QuickBooks—not the latest cost.
Because it uses period-specific data, this method is usually more accurate for financial reporting, as it aligns with how costs were recorded when the transaction actually occurred.
4. Manual Cost
The Manual Cost comes from values you’ve entered manually in ConnectBooks. These are added on the Listings page and are specific to each SKU.
5. Third Party Cost
Use this if you only want costs from third-party systems like SellerCloud or GoFlow, ignoring any other sources.
6. ConnectBooks Cost
This is the cost from the ConnectBooks Inventory System, calculated using the FIFO (First In, First Out) method.
It does not use any fallback options.
7. ConnectBooks Cost with Fallback
This starts with the ConnectBooks Inventory cost (FIFO) but falls back to the ConnectBooks Default Cost (manual entry on the ConnectBooks item) if there's missing data, such as:
No bills entered
Transactions without cost information
8. ConnectBooks Default Cost
This uses the cost manually entered on each item in the ConnectBooks inventory system.
It does not calculate or pull cost from inventory or bills—just what’s manually input.
What is a Fallback Cost?
A fallback cost is a backup source used when the primary cost is missing or unavailable. It ensures that your reports still show a cost value, even if the main source doesn’t provide one.
Setting Your Default Cost Type
Users can choose their preferred default cost type for reports by going to the Default Settings page, accessible from the top right of the screen under their profile menu.
In the Reports section, you’ll find the option to select the Default Cost Type on Reports and the dashboard. Once selected, click Save Changes to apply. This ensures that reports will automatically use the chosen cost type unless changed manually.
Summary Table
Cost Type | Source | Fallback Cost Source |
Default Cost | Based on your system connection | Manual Cost |
QuickBooks Latest Cost | Latest average from QuickBooks | None |
QuickBooks Average Cost | Historical average from QuickBooks | None |
Manual Cost | Manually entered in ConnectBooks (Listings) | None |
Third Party Cost | From third-party systems (e.g., SellerCloud) | None |
ConnectBooks Cost | FIFO from ConnectBooks Inventory | None |
ConnectBooks Cost with Fallback | FIFO from ConnectBooks + fallback to default | ConnectBooks Default Cost on item |
ConnectBooks Default Cost | Manually entered in ConnectBooks (Item level) | None |