Support Off the Chain/Manuals/Purchases
Purchase Order Costings
Support Desk
posted this on January 19, 2011 16:20
The Purchase Order Costing functions give you the option to add additional costs to your purchases to ensure your average cost for each product on hand is accurate (i.e reflects the true cost of obtaining your stock).
| • | If your Purchase Order is imported or purchased in foreign currency you will need to complete a costing to ensure your landed cost is accurate. Go to the Costing screen under the Purchasing tab |
| • | You can only cost Placed Purchase Orders |
| • | You can re-cost Costed Purchase Orders by clicking the Roll Back button |
| • | You will need to have your additional invoices on hand or know the amount paid to complete an accurate costing |
| • | If your purchase is bought locally you generally won’t need to complete a costing and can go direct to the Receipt screen once the stock arrives, as there have been no additional costs that must be added to the stock |
| • | Select the required Purchase Order for costing from the Order Number drop down selection |
| • | Both Placed and Costed Purchases Orders will display |
| • | Once selected both the header and line data will be displayed |
| • | If you have purchased in a currency differing from your base currency you will need to convert the price as per the exchange rate you will pay on |
| • | The default exchange rate for the purchase currency will show as per your Currency setup in Settings |
| • | You can override this exchange rate to match the exact rate used for payment of required by typing over the rate and clicking the update button, this is important to reflect your products average cost ongoing |
| • | The selected Purchase Order lines will also show in the first data grid below the header in the Purchase Order Costed Lines section |
| • | What you have ordered and it’s converted unit and total cost to you base currency will be displayed |
| • | To enter additional costs for your purchase (e.g. import fees etc) start by selecting the supplier requiring payment by either using the Code or Name alpha search or click the Search button for a more detailed search |
| • | Once the supplier is selected the line will show the currency of the supplier |
| • | Enter in the tax exclusive cost for the service in the Cost field |
| • | Whether or not the cost attracts Tax is determined by the Taxable checkbox, if checked Tax will be added automatically as per your Supplier setup |
| • | Select the Cost Date from the Date calendar |
| • | Enter in the reference you want to show for the costing (i.e. Freight) in the Reference field |
| • | Enter any relating comments for the costing in the Comments field |
| • | Once you have completed your costing entry click the Add button |
| • | The cost will be saved to the lower costing grid and automatically split the entered cost across the value of lines entered on the purchase by their value |
| • | The detail of the costing total and unit line split will show in the data grid above to provide a total cost per unit |
| • | You can repeat the costing step to pay as many suppliers as required for your purchase |
| • | You can delete an incorrect costing line by clicking the relating Delete button next to the line |
| • | Once you are sure you have entered all of your costs and your exchange rate accurately you can complete the costing by clicking the Complete Costing button |
| • | You can re-cost a Costing after amending the Purchase Order through the Purchase Order list, but not after a purchase order has been receipted, if you have inaccurately costed your purchase you will need to fix it using Stock Adjustments |
| • | Totals for your costing will be displayed at the bottom right |
| • | Completing your costing will automatically display a report for printing |
| • | You can Print the Costing by clicking the Print button |
| • | You can email the Costing by clicking the Email button |
| • | If you want to Cancel the current entry to start again click the Cancel button |
Comments latest first
Thanks for clarifying that. It would be helpful to be able to record costings after a purchase order has been completed and have Unleashed automatically make the stock adjustments, as I certainly want to be able to receive the goods so they are available to be despatched without having to wait for the freight invoice.
Hi Graham & Ken,
Graham - If you pay in 2-3 installments what I would recommend is working out the total you paid in each currency and then derive the exchange rate to use from that. This is assuming you receive the goods after the last installment.
Ken- Unfortunately in those types of situations it would be impossible for any system to know what the Freight was if you are needing to receipt the stock in. All I can recommend is to do a stock adjustment on the products to allocate the freight once you know what it costs. Is there no way to find out the costs from the carrier earlier?
Kind Regards
The Unleashed Team
The workflow is not helpful when you receive the goods before all of the costings have come in. For example I receive the goods into stock and then several weeks later receive the invoice for the freight. Once I receipt the goods into stock I can no longer enter costings?
I'm trying to understand what this means when I buy stock from overseas but make payments in 2 or 3 instalments. Each at a different exchange rate? Please explain?