---
title: Dashboard | Understanding Last Cost and Weighted Average inventory cost calculations
description: R-Suite Knowledge Base
---

[Skip to content](https://support.blaze.me/articles/last-cost-default#main-content)

[![BLAZE-Logo-Blue (2)](https://support.blaze.me/hs-fs/hubfs/BLAZE-Logo-Blue%20(2).png?width=140&height=37&name=BLAZE-Logo-Blue%20(2).png)](https://support.blazepos.com/?hsLang=en)

- [BLAZE Apps Knowledge Base](https://support.blazepos.com/)

Open main navigation

Close main navigation

- [BLAZE Apps Knowledge Base](https://support.blazepos.com/)

 Questions? Find helpful articles by searching here...

- There are no suggestions because the search field is empty.

1. [R-Suite Knowledge Base](https://support.blaze.me/articles?hsLang=en)
2. [Dashboard](https://support.blaze.me/articles/dashboard?hsLang=en)
3. [Settings](https://support.blaze.me/articles/dashboard?hsLang=en#settings)

# Dashboard | Understanding Last Cost and Weighted Average inventory cost calculations

## Inventory cost calculations play a key role in helping businesses maintain accurate profit margins. BLAZE offers two options to calculate inventory wholesale costs: Last Cost and Weighted Average.

To view, or change, your **Inventory cost calculation** settings navigate to **Settings \> Inventory**in your Greenline dashboard. The default setting is **Last Cost**. 

*\*Please note: Changing your **Inventory cost calculation** setting will only affect reporting values starting from the day the setting was changed moving forward. Changing this setting **does not** affect reporting values for days before the setting was changed.* 

If you do not see the **Settings** option in your dashboard menu, this means that you do not have access to this section of the Greenline dashboard. Please contact your dashboard administrator if you require access to the dashboard **Settings**. Greenline support cannot change employee security roles or permissions. 

![Settings \> Inventory Better](https://support.blaze.me/hs-fs/hubfs/Knowledge%20Base%20Import/Settings%20%3E%20Inventory%20Better-1.png?width=688&height=336&name=Settings%20%3E%20Inventory%20Better-1.png)

BLAZE uses the **cost per unit** value entered into your **purchase orders**, or a manually entered product wholesale cost, to calculate profit margins.

Completing a **purchase order** will automatically set your product wholesale costs to be the same as the **cost per unit** entered into the completed **purchase order**. 

*\*Please note: BLAZE **does not** support wholesale costs based on case price. Please enter the cost per unit into your purchase orders even if you purchased one or more cases of a product.*

### **Last Cost**

**Last Cost** represents the last, or most recent, wholesale **unit cost** you paid for any specific product. **Last cost** *always* uses this most recent wholesale cost to calculate your profit margins. **Last cost** does not take into account any changes, or fluctuations, to your wholesale costs. 

**Example:**

In January, you order a product with a **cost per unit** of $10.00. When you complete the new **purchase order**, the **cost per unit** will automatically be set to $10.00. As you sell the product, your profit margin will be calculated using a **cost per unit** of $10.00. 

In March, you reorder the same product but this time the **cost per unit** is $9.50. When you complete the new **purchase order**, the **cost per unit** will automatically be set to $9.50, *regardless of any units remaining that were purchased for $10.00.*

From this point forward your profit margin will be calculated using a **cost per unit** of $9.50. 

To manually enter a wholesale cost for a specific product, click into the product from your dashboard **Product List** and navigate to the **Pricing** section of the product. Enter the new **cost per unit** and save the product to apply your changes. 

*\*Please note: Editing wholesale costs will not affect historical margins.*

![Product \> Cost](https://support.blaze.me/hs-fs/hubfs/Knowledge%20Base%20Import/Product%20%3E%20Cost-1.png?width=688&height=296&name=Product%20%3E%20Cost-1.png)

### Weighted Average

**Weighted Average** represents the average of all the **costs per unit** paid for a specific product, and the existing quantities of units purchased at a different cost per unit left in inventory. This pricing strategy accounts for changes in **costs per unit** over time, which can help retailers generate reports that reflect more accurate profit margins versus the **last cost** setting. 

**Example:**

You order 10 units of a product at a **cost per unit** of $10.00. When you complete the new **purchase order**, the **cost per unit** will automatically be set to $10.00. This means that the total value of your current product inventory is $100 (10 units x $10). All sales from this point on have a **cost per unit** of $10.00.

During the month, you sell 6 units of the product and have 4 units remaining in inventory.

You reorder another 10 units of this product but this time the **cost per unit** is $9.50. The value of your newly received product inventory is $95.00 (10 units x $9.50). 

Your total inventory quantity after completing the newest **purchase order** is now 14 units (4 units + 10 units).

The **weighted average** setting then automatically calculates and adjusts the **cost per unit** value of the product using this formula:

[![](https://support.blaze.me/hubfs/Knowledge%20Base%20Import/downloads_intercomcdn_comio287342322836ddb2e249d1bccc2b9e16aimage-4-1-1.png)](https://support.blaze.me/hubfs/Knowledge%20Base%20Import/image-Jul-25-2023-05-27-30-6761-AM-1-1.png?hsLang=en)

 

Using the formula above, the **cost per unit** is now $9.64. From this point forward your profit margin will be calculated using a **cost per unit** of  $9.64. As a result, retailers have a much more accurate cost calculation that takes into account any remaining inventory that was purchased at a different **cost per unit**. 

The **weighted average** setting can be harder to understand but results in a more accurate profit margin calculation. 

To manually enter a wholesale cost for a specific product, click into the product from your dashboard **Product List** and navigate to the **Pricing** section of the product.

When clicking into the **Wholesale cost** field, you will be prompted with the message shown below:

![Weighted Avg Warning](https://support.blaze.me/hs-fs/hubfs/Knowledge%20Base%20Import/Weighted%20Avg%20Warning-1.png?width=688&height=272&name=Weighted%20Avg%20Warning-1.png)

Click **I understand** to override the current **weighted average** cost calculation. Enter the new **cost per unit** and save the product to apply your changes.

![Product \> Cost](https://support.blaze.me/hs-fs/hubfs/Knowledge%20Base%20Import/Product%20%3E%20Cost-1.png?width=688&height=296&name=Product%20%3E%20Cost-1.png)

- [Getting started](https://support.blaze.me/articles/getting-started?hsLang=en)
- [Dashboard](https://support.blaze.me/articles/dashboard?hsLang=en#main-content)

    - [General](https://support.blaze.me/articles/dashboard?hsLang=en#general)
    - [Settings](https://support.blaze.me/articles/dashboard?hsLang=en#settings)
    - [Employees](https://support.blaze.me/articles/dashboard?hsLang=en#employees)
    - [Customers](https://support.blaze.me/articles/dashboard?hsLang=en#customers)
    - [Products](https://support.blaze.me/articles/dashboard?hsLang=en#products)
    - [Inventory](https://support.blaze.me/articles/dashboard?hsLang=en#inventory)
    - [Sales](https://support.blaze.me/articles/dashboard?hsLang=en#sales)
    - [Purchase Orders](https://support.blaze.me/articles/dashboard?hsLang=en#purchase-orders)
    - [Discounts](https://support.blaze.me/articles/dashboard?hsLang=en#discounts)
    - [Reports](https://support.blaze.me/articles/dashboard?hsLang=en#reports)
- [POS (Tablet)](https://support.blaze.me/articles/pos-tablet?hsLang=en#main-content)

    - [Getting Started](https://support.blaze.me/articles/pos-tablet?hsLang=en#getting-started)
    - [General](https://support.blaze.me/articles/pos-tablet?hsLang=en#general)
    - [POS Register](https://support.blaze.me/articles/pos-tablet?hsLang=en#pos-register)
    - [Starting and Ending Shifts](https://support.blaze.me/articles/pos-tablet?hsLang=en#starting-and-ending-shifts)
- [POS (Browser)](https://support.blaze.me/articles/pos-browser?hsLang=en#main-content)

    - [Starting and Ending Shifts](https://support.blaze.me/articles/pos-browser?hsLang=en#starting-and-ending-shifts)
    - [General](https://support.blaze.me/articles/pos-browser?hsLang=en#general)
    - [POS Register](https://support.blaze.me/articles/pos-browser?hsLang=en#pos-register)
- [BLAZE ECOM](https://support.blaze.me/articles/blaze-ecom?hsLang=en#main-content)

    - [Customization](https://support.blaze.me/articles/blaze-ecom?hsLang=en#customization)
    - [ECOM Discounts](https://support.blaze.me/articles/blaze-ecom?hsLang=en#ecom-discounts)
    - [SEO](https://support.blaze.me/articles/blaze-ecom?hsLang=en#seo)
    - [General](https://support.blaze.me/articles/blaze-ecom?hsLang=en#general)
    - [ECOM Set-up](https://support.blaze.me/articles/blaze-ecom?hsLang=en#ecom-set-up)
- [BLAZEPAY](https://support.blaze.me/articles/blazepay?hsLang=en#main-content)

    - [Getting Started](https://support.blaze.me/articles/blazepay?hsLang=en#getting-started)
    - [General](https://support.blaze.me/articles/blazepay?hsLang=en#general)
    - [BLAZEPAY Merchant Portal](https://support.blaze.me/articles/blazepay?hsLang=en#blazepay-merchant-portal)
- [Hardware](https://support.blaze.me/articles/hardware?hsLang=en#main-content)

    - [General](https://support.blaze.me/articles/hardware?hsLang=en#general)
    - [Printers](https://support.blaze.me/articles/hardware?hsLang=en#printers)
    - [Payments](https://support.blaze.me/articles/hardware?hsLang=en#payments)
    - [Scanners](https://support.blaze.me/articles/hardware?hsLang=en#scanners)
- [BLAZE Sites](https://support.blaze.me/articles/blaze-sites?hsLang=en#main-content)

    - [General](https://support.blaze.me/articles/blaze-sites?hsLang=en#general)
    - [Customization](https://support.blaze.me/articles/blaze-sites?hsLang=en#customization)
    - [Widgets](https://support.blaze.me/articles/blaze-sites?hsLang=en#widgets)
    - [SEO](https://support.blaze.me/articles/blaze-sites?hsLang=en#seo)

[![BLAZE-Logo-Blue (2)](https://support.blaze.me/hs-fs/hubfs/BLAZE-Logo-Blue%20(2).png?width=140&height=37&name=BLAZE-Logo-Blue%20(2).png "BLAZE-Logo-Blue (2)")](http://blaze.me)

BLAZE Apps Knowledge Base

Copyright © 2026, BLAZE Solutions Inc.