Materials Management

Learn how to manage your raw materials and track their costs and inventory.

What Are Materials?

Materials are the raw inputs or components used to create your products. Examples include fabric for clothing, flour for baking, or electronic components for devices. Each material has a cost, and CostTrack Pro uses these costs to calculate your product costs automatically.

Creating a Material

To add a material: (1) Go to Materials page, (2) Click 'Add Material', (3) Enter material name and supplier, (4) Choose unit type (pieces, kg, liters, etc.), (5) Enter cost per unit, (6) Set low-stock threshold, (7) Save. The cost per unit is crucial as it directly impacts your product costing.

Pricing Models

CostTrack Pro supports two pricing models: Per-Piece (each unit costs the same) and Per-Set (a set of units costs a fixed amount). Choose the model that matches how your supplier charges. For example, if you buy fabric by the meter, use Per-Piece. If you buy in rolls, use Per-Set.

Managing Stock Levels

Track your material inventory on the Inventory page. Record additions when you receive new materials and deductions when you use them in manufacturing. CostTrack Pro automatically deducts materials when you record manufacturing, so you don't need to manually update stock.

Low-Stock Alerts

Set a low-stock threshold for each material. When your inventory falls below this level, you'll see an alert on the Inventory page. This helps you reorder materials before running out and prevents production delays.

Supplier Management

Keep track of your suppliers in the material details. If you have multiple suppliers for the same material, create separate material entries for each supplier with their respective costs. This helps you compare costs and choose the most economical option.

Best Practices

Accurate Costing

Ensure material costs include all expenses (purchase price, shipping, taxes). Accurate costs lead to accurate product pricing.

Regular Updates

Update material costs when supplier prices change. This ensures your product costs and pricing remain accurate.

Standardize Units

Use consistent units across your materials. If you use both kg and grams, convert to one standard unit to avoid confusion.

Organize Suppliers

Keep supplier information updated. Include contact details and payment terms for easy reference when reordering.

Monitor Inventory

Regularly check inventory levels and set appropriate low-stock thresholds. This prevents stockouts and ensures smooth production.

Document Changes

When material costs change, note the reason (supplier price increase, new supplier, etc.) for future reference.

Common Scenarios

Supplier Price Increase

Update the material cost in CostTrack Pro. Your product costs will automatically recalculate, and you can adjust product prices if needed.

Running Low on Stock

Set a low-stock threshold alert. When inventory falls below this level, you'll be notified to reorder before running out.

Multiple Suppliers

Create separate material entries for each supplier with their respective costs. This helps you compare and choose the most economical option.

Seasonal Price Fluctuations

Update material costs seasonally. Track these changes to understand how they impact your product profitability.

Bulk Discounts

If you get discounts for bulk purchases, calculate the average cost per unit and update it in CostTrack Pro.

Ready to Manage Your Materials?

Start adding your materials to CostTrack Pro and watch your product costs calculate automatically.