Inventory and Assembly items support Prep Cost and Vendor Rebate.
Prep Cost adds a fixed amount to the item's cost (polybagging, labeling, third party prep fees, and so on).
Vendor Rebate lowers the item's cost (supplier rebates, manufacturer credits, per unit kickbacks). In Excel, this column is called "Rebate".
Entering the values
Enter both as plain numbers. No minus sign on the rebate, no plus sign on the prep cost. ConnectStock handles the direction automatically.
For example, a 50 cent prep cost is entered as 0.50. A 50 cent rebate is also entered as 0.50. The system knows that prep cost adds and rebate subtracts.
Where they appear
P&L reports
Prep Cost and Vendor Rebate flow into your P&L reports, adjusting the cost side of profitability for each SKU. Both apply when the report's "Ignore Prep Cost" option is off. "Include Prep Cost" in Default Settings decides whether that option starts off or on.
The item's Prep Cost and Vendor Rebate apply only when the report's cost comes from ConnectStock. Prep Cost must also be set to ConnectStock Item in "Prep Cost Source" in Default Settings. Otherwise the report uses the prep cost on the Listing.
Inventory reports
They don't change inventory value or quantity. The Inventory Turnover report uses P&L cost and has its own "Ignore Prep Cost" option.
QuickBooks export
By default, both prep cost and rebate are included in the QuickBooks export. To leave them out:
Go to Stores & Files and click the store.
Under Accounting Settings, click Settings.
On the QuickBooks tab, click Configure Advanced Settings.
Tick Don't Import Prep Cost to QuickBooks, then click Save.
This 1 setting controls both fields. When it's on, QuickBooks gets only the base item cost.
This setting only shows when the store doesn't track inventory and "Don't Import Cogs to QuickBooks" is off.
Frequently asked questions
Do I enter the rebate as a negative number?
No. Enter it as a plain number, like 0.50. ConnectStock subtracts it for you.
Why doesn't my prep cost show in the P&L?
Check that the report's "Ignore Prep Cost" option is off. "Include Prep Cost" in Default Settings decides whether that option starts off or on. The item's Prep Cost applies only when the report's cost comes from ConnectStock and "Prep Cost Source" in Default Settings is set to ConnectStock Item. Otherwise the report uses the prep cost on the Listing.
Do prep cost and rebate change my inventory value?
No. They don't change inventory value or quantity.