Product Cost

This inventory screen displays the current cost information for the rental or sales item per unit and can be accessed from the Inventory Inquiry.

PRODUCT #

The selected product number displays.

DESCRIPTION

The primary product description displays.

AVERAGE COST

The cost each which would have to be paid to replace the item today, displays.

After the initial inventory record has been entered, all future purchases will update the cost by calculating an average weighted cost.
This is calculated automatically when posting inventory purchases.
View Average Cost Adjustments can be used to view the cost changes audit log for the product.

Average Cost Calculation example:

            (Old Cost x Existing Qty) + (New Cost x New Purchase Qty)
                         (Existing Quantity + New Quantity)

           = ($1.50 Old Cost x 10 On Hand Qty) + ($2.00 x 4 New Qty)
                        (10 On Hand Qty  +  4 New Purchase Qty)

           = (15 + 8)
                14

           =  $ 1.64

LAST P.O. COST

Each time an item is purchased, this field is updated as a record of the last purchase cost.

LANDED P.O. COST

When an item is purchased, this field is updated as a record of the actual last landed purchase cost.

The LCF -Landed Cost Factor is used to include the exchange, brokerage, duty, and freight, in the cost of an imported product. The factor is used to convert the cost on the A/P invoice to the final purchase cost as follows:
Landed Purchase Order Cost = Last P.O. Cost x Landed Cost Factor.

ADJUSTED FIRST COST

This value can be updated manually, and is updated during the purchasing process for non-bulk.
It is used is reflected in the Time Utilization Report, Disposal Transaction Report and the Rental Age Report.

REPLACEMENT COST

This is the cost each to replace this item if purchased new.
This cost is used in the Rental Value Check to determine when a customer is approaching his Rental Value limit.

RE-ORDER PRICE

This is the price used by the primary supplier when making new purchases of this item.
The Re-order pricing is used as the ORDER COST when entering a Purchase Order.

Any changes made to the Re-Order Price are tracked and the audit report history of Re-Order Price changes can be generated from Product Value Override Report.

RE-ORDER LCF

This factor is used to calculate the Landed Re-Order Cost of the product in the local currency.

LANDED RE-ORDER PRICE

This is the product cost in the local currency.
The Re-Order Price * Re-Order LCF = Landed Re-Order Price.

MARKUP %

The markup percentage can be used to calculate the List Price based from the Last Cost field.