Service Titan Knowledge Base

Set an inventory costing methodLast updated on 02/08/2022

If you track inventory in ServiceTitan, there are two methods by which you can recognize 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, 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.

  1. Go to the navigation bar and click Pricebook.

  2. In the side menu, click Materials or Equipment, depending on the pricebook item you want to edit. The corresponding screen opens.

  3. For the item you want to update, select Actions actions-button.png > View/Edit Material/Equipment. The Edit Material or Edit Equipment screen opens.

  4. Click the Inventory Settings tab.

  5. 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.

  6. Click Update next to the current weighted average cost.

  7. In Update Average Cost, enter the new average cost that you want to use for the item.

  8. Click Confirm.

The item’s new average cost is set and will continue to be updated as you make additional purchases.

Note: ServiceTitan will continue to recalculate the average cost based on changes you make to the item’s cost on bills dated up to 30 days prior to the current date.



Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.