CostItem Table calculation

How are products cost calculated in the CostItem table?

For example, I have a drink named Peach Fuzz. Ingredients 1 oz vodka at .024/oz and 1 oz Peach Schnaaps at .034/oz. The recipe calls for 1 oz of each but the cost in the CostItem table for Peach Fuzz is .016 per drink.

Each liquor is set up as an inventory item with the correct cost/oz.

Any ideas or suggestions where my error is at?

The Default Cost parameter in Inventory Items is only there to supply a “regular” price that you would Pay when you purchase the Item.

Actual Cost is computed as an average over the volume of what you buy and for how much, and how much of that Item is used in a Recipe/Product.


Somewhere in your Inventory Purchase Transactions, you Paid more for Vodka and/or Schnaaps than what you think you might have paid.

Or, you Paid what you expect to pay, but for a lower volume (smaller bottle)

Or, your Recipe is incorrect.

Or, your Inventory Item Base/TxUnit is incorrect.

In summary, the Default Cost is there only for convenience when making a Purchase. It is not used to compute Cost overall whatsoever.

Thank you. I’ll check all those areas again.