---
key: create-a-cost-rule
title: Create a cost rule
audience: staff
section: administration/billing-commerce
routes: ["/settings/org/billing/cost-rules"]
permissions: ["commerce.cost_rules.manage"]
features: ["billing.setup"]
since: 0.0.1
updated: 0.0.1
status: published
summary: Tell Nova what a service or part costs you, or which supplier or stock method to take the cost from, so margins on quotes and invoices are right.
keywords: [cost price, what it costs me, margin, supplier cost, vendor cost, standard cost, FIFO, average cost, cost of goods]
related: [create-a-price-book-and-pricing-rules, add-a-supplier, add-a-product-or-part, create-a-quote]
---

In the sidebar, open **Settings**, then choose **Cost Rules** under **Sales & Billing**. The page address is `/settings/org/billing/cost-rules`. The page is titled **Commercial Cost Rules**.

## Before you start

- A cost rule says where the cost of a service or part comes from: a fixed number you type, a supplier's price, or your stock records. Nova uses it to work out margin and to feed markup and margin pricing rules.
- Your role needs the permission to manage cost rules. Without it the page is read-only.

## Steps

1. Press **New cost rule**. A panel titled **Commercial cost workspace** opens; press **New cost rule** inside it. The form is titled **New cost rule**.
2. Type a **Rule name** (or a short **Rule code**).
3. Pick what it applies to: an **Offering** for a service or an **Inventory item** for a part. A rule needs one of them. Add a **Vendor** if the cost comes from a supplier.
4. Pick a **Line semantic** such as **Service labor** or **Material** if the rule should only apply to that kind of line.
5. Pick a **Cost source type** and a **Cost strategy**: **Standard cost** for a number you type into **Unit cost**; **Vendor default** or **Vendor latest** to take the supplier's price; **Inventory FIFO** or **Inventory weighted average** to take the cost from stock movements.
6. Add a **Unit of measure** and, if the cost is only good for a period, **Effective start** and **Effective end**.
7. To limit where the rule applies, press **Add scope** under **Applicability scopes** and pick a **Scope type** such as **Branch** or **Account** with its **Scope value**. Press **Add condition** to add a **Quantity tier** or similar.
8. Press **Create rule**. Nova shows **Cost rule created.**

## What you see

- The list shows each **Rule**, its **Target**, its **Strategy**, when it was **Updated** and whether it is **Active** or **Inactive**. Press a row to open it.
- Inside the workspace, the selected rule shows its scopes and **Conditions**. Set a **Quantity** and a **Cost strategy** and press **Preview rule** to see the **Resolved unit cost** and the **Winning cost source** Nova would use.
- Under **Filters**, you can narrow the list by **Status**, by **Source Type** and by **Strategy**.

## If something looks different

- **New cost rule** is missing: your role cannot manage cost rules. Ask your admin.
- The rule refuses with a message about a target: pick an **Offering** or an **Inventory item**.
- The rule refuses with a message about a name: type a **Rule name** or a **Rule code**.
- **Create rule** is greyed out: your organization's country or currency is not set yet. Fix that first; see [[update-your-company-details]].
- **Save rule** is greyed out on an older rule: that rule was made in a different currency from the organization's and is now read-only. Create a new rule instead.
- You want to change what you charge, not what it costs: see [[create-a-price-book-and-pricing-rules]].

[[route:/settings/org/billing/cost-rules|Open Cost Rules]]