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Tracking and Costing Inventory at the individual unit level
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Tracking and Costing Inventory at the individual unit level

One of the more unique offerings from the VISCO software is the granularity of the inventory tracking.  Of course individual unit level tracking is not for everyone, but if your inventory  varies in terms of value, weights or sizes from piece to piece then finding a software that can manage this is quite challenging.

An example of this is a customer that running the system that is in the steel coil business.  They buy the steel in Metric Tons and Sell thesteel by LBS so all pricing must by by weight.  However, the steel itself comes wrapped in big coils so the inventory must be kept by PC.

Each coil in inventory has its own unique number, and associated with each coil is the total weight (LBS or MTS) and total value.  The value of the coil is calculated by totaling all costs which have been applied to the coil/total coil qty x qty remaining.  Lets look at an example below:


Coil # 1234567

Total Weight: 10,000 LBS



Product Cost:  $3,000

Ocean Freight Cost: $500 (this is only the portion of the freight cost that applies to this coil)

Duty: $210 (calculated as value of the goods x duty rate)

Trucking: $250

Storage: $100


Total Cost: $4060

Total Cost per LB: $.406


Qty remaining in this coil 5000 LBS

Value of remaining inventory=$2030


As there are sales against inventory, users are able to choose which specific coil they are using to fulfill orders.  Since the cost per LB on each coil is known, we can calculate the profit in total and per LB on every sale as well.  Lets look at the sale against the coil # 1234567 from the example above:




Sales Order # 1001 of 5000 LBS at $.68 per LB

Sales Order # 1001 is allocated against coil # 1234567 and all 5000 LBS can be pulled from the same coil

Total Sales Amount= $3400 (5000 LBS x $.68 per LB)

Cost of Sales= $2030

Total Profit on this sales is= $1370


Cost per LB: $.406

Sale Price per LB: $68

Profit per LB= $.274


costing_break_downprofit_per_unit inventory_per_coil

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