# MArgin by customer reports cost calculation

**URL:** <https://community.breww.com/t/margin-by-customer-reports-cost-calculation/1597>\
**Category:** Help & advice\
**Created:** [13 September 2022 07:57 UTC](https://community.breww.com/t/margin-by-customer-reports-cost-calculation/1597 "2022-09-13T07:57:36Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![gijs-van-wiechen](https://community.breww.com/user_avatar/community.breww.com/gijs-van-wiechen/32/434_2.png) [@gijs-van-wiechen](https://community.breww.com/u/gijs-van-wiechen)\
**Post date:** [13 September 2022 07:57 UTC](https://community.breww.com/t/margin-by-customer-reports-cost-calculation/1597/1 "2022-09-13T07:57:36Z")

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Hey,

As the recent changes in stock valuation and predictive cost reports are now taking into account (expected) losses, I was wondering which way of cost calculation is used in the margin by customer type report.

Best

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**Author:** ![luke](https://community.breww.com/user_avatar/community.breww.com/luke/32/3636_2.png) [@luke](https://community.breww.com/u/luke)\
**Post date:** [13 September 2022 08:58 UTC](https://community.breww.com/t/margin-by-customer-reports-cost-calculation/1597/2 "2022-09-13T08:58:58Z")

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Thanks for the question, Gijs.

The margin reports are based on the sale price versus the **cost to produce**. This is the actual cost associated with the packaging of that beer, as per the process explained in:

[https://community.breww.com/t/how-are-batch-costings-and-wip-value-calculated-in-breww/852](https://community.breww.com/t/how-are-batch-costings-and-wip-value-calculated-in-breww/852)

The changes to the valuation report (and the fact that it can use a different calculation) is because there is a difference between **the cost of something** and **the value of something**. I hope that makes sense but please let us know if there are any questions on this.
