# Purchase Order Costs

## Overview

Sellercloud provides you with control over the financial breakdown of your **Purchase Order (PO) Costs**, allowing you to calculate your full product expenses, vendor-billed charges, and internally absorbed costs with precision. The platform supports everything from shipping to customs, credit card fees, dropship fees, and any other extra costs. You can update expenses directly on the PO, import extra-cost data in bulk, and choose how additional costs are distributed across units.

Sellercloud also provides flexible currency handling for international purchasing and various [Client Settings](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) that let you tailor PO behavior to your workflows.

## PO Costs

The following costs may appear on a Purchase Order in Sellercloud:

- **Subtotal**– The combined cost of all line items on the PO before shipping, discounts, and any other additional charges.
- **Shipping Total**– The shipping charges for delivering the PO. Entered manually or received from integrations.
- **Dropship Fee Total**– The total fees for dropshipping products. Requires the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Enable Dropship Fee**.
- **Shipping Total (3rd Party)**– Freight or shipping charges that are billed to your third-party carrier account, not to the vendor. Often used when your company covers shipping directly. Can be excluded from the **Grand Total** by enabling the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Do Not Include Third Party Shipping In PO Grand Total**.
- **Customs Total**– Customs duties, import taxes, and related fees applied for international shipments, if applicable. Requires the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Purchase Orders Enable Customs Total Field**.
- **Tax Total** – The total amount of tax charged by the vendor on the PO, such as sales tax or VAT.
- **Other Total** – Any additional fees not covered by other categories (e.g., handling charges, environmental fees, vendor service charges).
- **Credit Card Fee** – Any fees associated with credit card payments for the order. Requires the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Enable Credit Card Fee on Purchase Orders**.
- **Unreceived Total**– The total cost of products that have not yet been received.
- **Total Unpaid**– The amount you still owe the vendor. Calculated as **Grand Total – Total Received (Payments)**,
- **Total Received**– The total amount of money recorded as paid to the vendor toward this PO.
- **Over Received**– If payments recorded exceed the PO’s total amount due, the extra amount appears here.
- **Grand Total**– The final, all-inclusive total for the PO. Calculated as **Subtotal + Shipping + Dropship Fees + Customs + Tax + Other Fees + Credit Card Fees – Discounts**. This is the actual amount owed to the vendor.

### Update PO Costs

To update PO costs:

1. Go to the [Purchase Order Details Page](https://descartessystems.aha.io/pages/7630848557116317467).
2. To correct costs related to product prices, click **Toolbox** and select **Items**, then make the appropriate changes in the **Items** panel **.**

3. To enter additional costs paid to the vendor, such as **Shipping**, **Customs**, **Tax**, and **Other**, click **Edit** and then use the **Total** panel.

4. To enter additional costs not paid to the vendor, see the [Manage Extra Costs](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#manage-extra-costs) section.

## Manage Extra Costs

Sellercloud can also calculate your **Extra Costs,** such as the extra cost per unit, as well as any other costs, including those not paid to the vendor.

The [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Enable PO Custom Extra Cost Per Unit** must be enabled.

There are two ways to add **Extra Costs** to a PO:

- **Extra Cost Per Unit**— Automatically generated, but you can update it manually as well. By default, its value is determined by dividing the sum of the **Shipping Total**, **Shipping Total (3rd Party)**, **Customs Total**, **Tax Total**, and **Other Total** equally among the product units on the PO. For example, if the sum of these costs is **$100** and you have **5** product units of a SKU on the PO, the **Extra Cost Per Unit** will be **$20**. Going further, if you choose to include **Extra Costs** in the **Average Cost**, and the product cost per unit is **$80**, the Average Cost will be **$80 + $20 = $100**. You can change the [Cost Distribution Type](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#cost-distribution-types) using the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Divide PO Item Extra Cost Using**.

- **Extra Cost (PO-Based Per Unit)** — An extra cost for the whole PO, split between the product units on the PO based on your selected [Cost Distribution Type](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#cost-distribution-types).

Note the following details about **Extra Costs**:

- Sellercloud stores the sum of the **Product Cost** and **Extra Costs** as the [Gross Cost](https://descartessystems.aha.io/pages/7630846768090162881). It appears on the [Product Details Page](https://descartessystems.aha.io/pages/7630846719601169819) and the [Vendor Prices](https://descartessystems.aha.io/pages/7630835949514299392) section of the **Purchasing**.
- **Extra Costs** are not included in the **Grand Total** unless you enable the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Include PO Based Extra Costs In Grand Total**.
- **Extra Costs** are not included in the [Average Cost](https://descartessystems.aha.io/pages/7630845499462536259) calculations unless you enable the [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Include PO Based Extra Costs In Average Cost Too**.

The [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Consider PO Extra Costs when Calculating Product Costs** is required for this functionality.

Sellercloud only factors in [Received POs](https://descartessystems.aha.io/pages/7630848027325367764) when calculating the **Average Cost** and **Gross Cost**.

### Cost Distribution Types

There are four different **Distribution Types** that you can choose to use when calculating the **Extra Cost (PO-Based Per Unit)** on a PO:

- **Normal (Equally)** – Distributes the extra cost evenly across all units on the PO, regardless of item value, weight, or volume. Each unit receives an identical share of the added cost.
- **Cost-Based** – Distributes the extra cost proportionally according to each item’s total cost on the PO. Higher-cost items absorb a larger portion of the extra cost.
- **Weight-Based** – Distributes the extra cost proportionally according to the **Product Weight**. Heavier items absorb a larger share of the extra cost. All items on the PO must have their **Product Weight** entered; otherwise, the calculation will revert to dividing the cost equally.
- **Volume-Based** – Distributes the extra cost based on each item’s physical volume, calculated as **Length** × **Width** × **Height**. Larger-volume items absorb a larger portion of the extra cost. If any item is missing **Product Dimensions**, the system defaults to equal distribution ( **Normal**).

### Add Extra Costs Manually

To add or update **Extra Costs** manually:

1. Go to the [Purchase Order Details Page](https://descartessystems.aha.io/pages/7630848557116317467).
2. Click **Toolbox** and select **Extra Costs**.
3. Click **Edit**.
4. To update the **Extra Cost Per Unit**, update the column with the same name in the **Items** panel and click **Save**.

5. To update the **Extra Cost (PO-Based Per Unit)**, click the **Add Extra Cost** icon in the **Extra Costs** panel. Then enter the **Cost** and **Description**, select a [Distribution Type](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#cost-distribution-types), and click **Save**.

### Import Extra Cost Per Unit

To import **Extra Cost Per Unit** from a spreadsheet:

1. Go to the [Purchase Order Details Page](https://descartessystems.aha.io/pages/7630848557116317467).
2. Click **Toolbox** and select **Extra Costs**.
3. Click **Edit**.
4. In the **Items** panel, click the **Upload** **products** icon.

5. Click **Download Template** to download a spreadsheet with the PO items data.

6. Open the template and enter the extra cost under the **ExtraCostPerUnit** column on each row. The following details about the purchased products are also provided:
    1. **ID** – The unique line item identifier in the PO.
    2. **ProductID** – The product’s SKU.
    3. **ProductName** – The product name.
    4. **QtyOrdered** – The number of product units ordered.
    5. **QtyReceived** – The number of product units received.
7. Select the updated **File**.
8. Click **Upload**.

### View Extra Costs

To view extra costs:

1. Go to the [Purchase Order Details Page](https://descartessystems.aha.io/pages/7630848557116317467).
2. Click **Toolbox** and select **Extra Costs** or **Items**.
3. Check the **Extra Costs** columns:
    1. On the **Extra Costs** tab, the **Extra Cost Per Unit** and **Extra Cost (PO-Based Per Unit)** are listed under separate columns.
    2. On the **Items** tab, the **Extra Costs** column shows both types of extra cost when you hover over it.

## Convert Currency

When purchasing from international companies, you may need to use their local currency. Sellercloud supports international currencies and lets you define the rate of conversion at the PO level. Learn more about [Selling on International Marketplaces](https://descartessystems.aha.io/pages/7630848441806381873).

By default, POs use the Company’s currency, as defined on the [Company Settings](/content/help/omnichannel-ecommerce/company-settings-overview/index.html) page > **General** panel > **Currency** field. However, if the currency of the vendor defined on the [Vendor Properties](https://descartessystems.aha.io/pages/7630846102934106433) page > **General** panel > **Default Currency** field is different, it will apply instead. You can manually change the currency on each PO, regardless of the company or vendor default.

The [Client Setting](https://help.sellercloud.com/sellercloud-knowledge-base/purchasing/purchase-orders/purchase-order-costs~7630847961823225163#related-client-settings) **Enable Currency Symbol For PO** is required for you to be able to set a **Default Currency** for each vendor to be used for newly created POs. This does not affect previously created POs.

To set a PO’s currency and exchange rate:

1. Go to the [Purchase Order Details Page](https://descartessystems.aha.io/pages/7630848557116317467).
2. Click **Edit**.
3. Select the appropriate **Currency**.
4. In the **Rate To $** and **Rate From $**, enter the exchange rate.

5. Click **Save**. When the PO is received, Sellercloud converts the values based on the defined exchange rate.

Exchange rates must be updated before receiving the PO. Once received, Sellercloud stores the converted values. To update the **Average Cost** after changing rates, use the **Rebuild Average Cost** action.

## Add No-Cost Items To PO

If a vendor offers the N-th item at no charge, you can include it on your Purchase Order as follows:

1. Go to the [Purchase Order Details Page](https://descartessystems.aha.io/pages/7630848557116317467).
2. Add all required items, making sure each product reflects its correct cost.
3. Add the free item as a separate line on the PO, and set its cost to **$0**.

By default, such items don’t affect **Average Cost** calculations. You can enable the Client Setting **Allow Free PO Items To Affect Product Cost** to include them.

## Related Client Settings

The following [Client Settings](/content/help/omnichannel-ecommerce/settings-overview/index.html) related to PO costs are available: **PO Costs**

- **Enable Dropship Fee**– Allow a dropship fee to be added to POs, enabling the **Dropship Fee Total**
- **Purchase Orders Enable Customs Total Field** – Allow customs-related charges, such as duties or import fees, to be added to POs, enabling the **Customs Total**
- **Enable Credit Card Fee On Purchase Orders** – Allow credit card fees to be added to POs, enabling the **Credit Card Fee**
- **Enable Currency Symbol For PO** – Allow converting PO items’ cost from a different currency into US dollars, enabling the **Currency** fields on POs.
- **Allow Free PO Items To Affect Product Cost**– Enable to include zero-cost PO items in the **Average Cost**

**Shipping Costs**

- **Enable Shipping Cost For PO With Status Ordered Or Greater** – Allow shipping to be added or updated only on POs that have reached **Ordered** status or any status beyond it.
- **Min PO Shipping Amount** – Enable the **Min PO Amount** field on POs. Once set, POs cannot be [Approved](https://descartessystems.aha.io/pages/7630848713094527310) unless the **Shipping Total** is above this amount.
- **Do Not Include Third Party Shipping In PO Grand Total** – Exclude the **Shipping Total (3rd Party)** from the PO **Grand Total**.
- **Enable Free Shipping For Purchase Orders** – Disable the **Shipping Total (3rd Party)** field whenever a PO’s **Receiving Status** is **Partially Received** or **Fully Received**.

**Extra Costs**

- **Enable PO Based Extra Costs** – Enables the **Extra Costs** tab and all related functionality, such as automatic and manual calculations, and the generation of a [Gross Cost](https://descartessystems.aha.io/pages/7630846768090162881) for your products.
- **Enable PO Custom Extra Cost Per Unit** – Allows adding and importing **Extra Cost Per Unit** individually instead of to the PO as a whole.
- **Divide PO Item Extra Cost Using** – Extra costs are divided into the item’s cost automatically. This setting determines the method of distributing the extra cost per product unit.
- **Consider PO Extra Costs When Calculating Product Costs** – Include **Extra Costs** in the product’s cost for accurate Profit & Loss reports.
- **Include PO Based Extra Costs In Average Cost Too** – Include **Extra Costs** in **Average Cost**
- **Include PO Based Extra Costs In Grand Total**– Include **Extra Costs** in the PO **Grand Total**.