---
alias: user-guide-manage-product-costs
description: "Define and modify product costs within the system, ensuring proper licensing and product activation"
---

# Manage Costs

:lock: Product.**Edit**

## Overview

This operation is used to define the **Product** costs.

## Setup

No specific setup is required other than to meet the precondition of the transaction.

## Preconditions

* The Costing module is properly licensed in the system.
* The Product exists and it is Active.

## Sequence of Steps

### Step 1: Manage Costs

If the *Costing* module is properly licensed in the system, the **Costs** tab will be enabled on the right-hand sidebar and you will be able to define the **Product** costing information.

1. Modify the **Product** costs by entering:
      * **Initial Unit Cost** - The initial cost is used to calculate the initial material cost when a material is created with this **Product**.
      * **Finished Unit Cost** - The finished cost is used to forecast the cost of a **Product**, accounting for the incorporated materials defined in the Bill-of-Materials (BOM) with their finished unit cost.
2. Select **Update** to complete the operation.

![manage_product_costing][manage_product_costing]

[manage_product_costing]: images/manage_product_costing.png