Costing & overhead
Configure optional predetermined overhead allocation for sales-order costing estimates.
Last updated:
Use Settings → Costing & overhead to add one optional predetermined overhead rate to sales-order costing summaries.
This is intentionally outside the first-run setup path. New accounts should connect Channels, import or add stock, and confirm direct costs before enabling estimated overhead.
What the setting does
When enabled, ChannelWeave shows an Estimated overhead line on sales order detail. The estimate is informational only:
- it does not change order totals
- it does not change stock valuation
- it does not change live listing prices
- it is not applied when currencies do not line up
Formula
ChannelWeave uses:
estimated overhead amount ÷ estimated allocation-base amount = overhead rate
The allocation base can be:
- Orders: spreads the overhead as a fixed amount per order
- Units sold: spreads the overhead by ordered unit quantity
- Net revenue: spreads the overhead as a percentage of active net revenue
For example, estimated overhead of GBP 12,000 over 6,000 orders gives a rate
of GBP 2.00 per order.
Where it appears
Sales order detail shows a compact costing estimate when the policy is enabled:
- product cost recorded from dispatch cost entries
- estimated overhead from the configured rate
- contribution after recorded product cost and estimated overhead, when the order has enough revenue information
Amounts are shown only when the sales-order currency, costing-policy currency, and inventory valuation currency match. ChannelWeave blocks mismatches rather than converting or guessing.
Product cost is recorded when dispatch consumes inventory cost. If an order has not dispatched yet, the product-cost line may be incomplete or zero.
Safe use
Use this feature only when the estimate is defensible. If the estimate is rough,
label the period clearly, for example 2026 Q3 estimate, and review it before
using it for pricing decisions.