This article explains how storage charges are calculated, why charges appear daily, and how they roll up on your invoice.
Overview
Pattern calculates storage costs on a daily basis, using the inventory on hand for each individual day. These daily charges are then aggregated into a weekly total on your invoice.
This approach ensures storage fees accurately reflect the inventory Pattern is storing for you over time, even as inventory levels change.
How Daily Storage Charges Work
Each day, Pattern reviews the total number of units stored in the warehouse.
- A storage charge is generated for that specific day, based on the inventory quantity on hand.
- If inventory levels remain the same, a similar charge will be created again the next day.
- If inventory levels increase or decrease, the daily charge adjusts accordingly.
Example
- Day 1: 12,000 units in storage → daily storage charge is generated
- Day 2: 12,000 units still in storage → a new daily charge is generated
- Day 3: 11,500 units in storage → daily charge reflects the lower inventory
Each day is calculated independently based on that day’s inventory.
Why Weekly Invoices Appear Higher
On your invoice, storage charges are typically shown as a weekly total rather than individual daily line items.
The weekly amount represents:
The sum of each day’s storage charge for that week
Because storage is charged daily, the weekly total can look higher than expected at first glance, but it is simply the accumulation of daily charges across the week.
Key Takeaways
- Storage charges are generated daily, not weekly or monthly
- Charges are based on inventory on hand each day
- Weekly invoice totals are the sum of daily storage charges
- Changes in inventory directly impact daily storage costs
Need More Detail?
If you have questions about your storage charges or need help reviewing inventory levels for a specific period, contact 3PLSupport@pattern.com to assist!