The importance of Cost items and how to use them to capitalise costs

This article assumes that you have already linked Vintrace and Xero and understand the basics of the accounting integration.

Cost items help you accurately track and capitalise specific costs against your individual bulk wines and inventory. Click here for more information on direct vs indirect costs.

Setup cost items

Firstly, you need to setup a cost item from Winery setup – Costing and link them to an appropriate account to your accounting package.

In the example below, we  have setup a cost item for a bottling setup fee for bottling done by third party.

Note: You can override the Default value ($) later on when you use the cost item.

Cost 2

Linking accounts

Using cost items

Below are the links to articles that show different ways of how cost items are used and capitalised: