# Refresher: Cost Breaks and Pack Breaks

## Refresher: Cost Breaks and Pack Breaks

A cost break is used when the unit the product is received in is different to the unit cost it is quoted in.Â For example, Cost P1 is \$100 (being the cost of a box of pens).Â  There are 100 pens per box. Pens are ordered by each pen.

TheÂ default cost break will always be set to zero.

### To calculate Current Cost from Pack Break

These calculations apply if the Cost Break is set to 0.

If Pack Break > 0

Current Cost = Cost P1 / Pack Break

If Pack Break < 0

Current Cost = Cost P1 x Pack Break

### To calculate Current Cost from Cost Break

These calculations apply if the cost break is NOT set to 0.

If Cost Break is > 0

Current Cost = Cost P1 / Cost Break

If Pack Break < 0

Current Cost = Cost P1 x Cost Break

See the chart below for some examples

 Cost P1 Retail Break Pack Break Cost Break Calculated Current Cost From Pack Break Calculated Current Cost From Cost Break Qty Purchased Change In stock on hand 10 1 1 0 10 0 1 1 10 1 1 2 0 5 1 1 10 1 -10 0 100 0 2 0.2 10 1 1 -2 0 20 1 1 