Set an inventory costing methodLast updated on 10/20/2022
If you track inventory in ServiceTitan, there are two methods by which you can recognize the cost for items on invoices. The default method is standard costing which uses the cost listed for an item’s primary vendor in your pricebook. The other method, weighted average costing, uses the average cost that you paid for an item on bills during the last 30 days, which allows for more accurate job costing on invoices.
Things to know
To use this feature, the Inventory Module must be enabled.
The weighted average costing method does not apply to serialized inventory items, which always use the exact unit cost of a serial number from the pricebook.
Set an inventory cost method
The default method in ServiceTitan is standard costing, but you can choose the weighted average costing method in Settings > Inventory > Configuration. For more information, see Inventory and Purchasing configurations.
Update an item’s weighted average cost
When you use the weighted average costing method, ServiceTitan automatically calculates an item’s average cost based on the item’s cost on bills. ServiceTitan applies the item’s average cost when the item is added to an invoice. However, if you change an item in your inventory, you can also update the item’s average cost to more accurately reflect the item you changed.
Go to the navigation bar and click Pricebook
.From the side menu, click Materials or Equipment, depending on the pricebook item you want to edit. The corresponding page opens.
For the item you want to update, select Actions
> View/Edit Material/Equipment. The Edit Material or Edit Equipment page opens.Click the Inventory Settings tab.
If inventory tracking isn’t turned on for this item, select the I understand… checkbox and click Activate Inventory Tracking. For more, see Enable inventory tracking for equipment and material.
Click Update next to the current weighted average cost.
In Update Average Cost, enter the new average cost that you want to use for the item.
Click Confirm.
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The item’s new average cost is set and will continue to be updated as you make additional purchases.
Note: ServiceTitan will recalculate the average cost of a bill dated within the prior 30 days is edited. Edits to bills older than 30 days will not recalculate the average cost.
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.
Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.