---
title: How is Last Cost calculated?
description: The last cost for a product is determined by the most recent cost establishing transaction that took place in a particular warehouse.
---

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April 9, 2025

# How is Last Cost calculated?

## The last cost for a product is determined by the most recent cost establishing transaction that took place in a particular warehouse.

The last cost for a product is determined by the most recent cost establishing transaction that addsinventory to a particular warehouse.  This includes:

- Inventory Receipts
- Inventory Assemblies
- Inbound Transfers
- Balance Adjustments used to set the initial on hand quantity and cost (Balance Adjustments used to adjust existing quantity on hand and/or costs do not update the Last Cost field)

Transfers out of that warehouse, for example, wouldn't update the last cost.  

![LastCost](https://hub.acctivate.com/hs-fs/hubfs/LastCost.png?width=600&name=LastCost.png)

Only products with an inventory type of Inventoried, Special order only, and Kit products can have a Last Cost. Kit products, which are non-inventoried, will have a Last Cost that is the sum of the kit component's Last Cost.

If you wish, it's also possible to manually override the last cost in edit mode and enter the value you want into the last cost field.  This can be useful if utilizing prices that calculate based on last cost.  However, keep in mind that the next transaction that takes place will cause Acctivate to recalculate costing and update the field once again.

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