Costs & List Prices by Product Class

** This utility is under development and is not yet available. **

This program lists the products by Product Class, so that the costs and list prices for products may easily be changed.
For all sales inventory, the average cost, last cost (cost at time of last purchase), markup and list price may be adjusted.
For rental inventory, the last cost, markup and list price, may be adjusted.

Note: The average cost for rental inventory can not be changed. For rental inventory, the average cost is the average of the Fixed Asset Tags for that Product number. In order to influence the average cost for rental items, adjust the Fixed Asset Tags separately.

The prompts are:

PRODUCT CLASS

Select a product class or look it up in the window as outlined in Product Class Search.

SORT BY PROD# OR DESC

Press <ENTER> for D - Description, to list the products in product description order for this class.
Type P - Product # to list the products in product number order for this class.

Middle of the Screen:

PRODUCT NUMBER

The Products will appear in Product # order or Description order within that Product Class, so that all costs and list prices in that class can be reviewed and changed.

DESCRIPTION

Press <F9> EXPAND Key in order to view the descriptions for the products on the screen.

AVERAGE COST

This prompt is accessible for sales items only. The average cost influences the value of the inventory, and is reflected in Sales Inventory Value Report. The average cost will rise and fall as the purchase cost of this item changes.

If Sales Item Average Cost by Location processing has been activated in the Support Application Parameters, press <F4> to access the product average costs by location.

Note: Since these average cost reflects both old purchases and new purchases, it is recommended NOT to alter the average cost of your sales inventory as part of routine updating. The average cost should ONLY be altered if the inventory records are SEVERELY out of date.

If the average cost for a product is changed, use Post Product Average Cost Changes, to print an audit report and to generate the G/L postings for the change in the Inventory value.

COST ADJUSTMENT DATE

When an average cost change is accepted the Operator is prompted for the Cost Adjustment Date. This date is used to track cost changes and is reflected in View Average Cost Adjustments.

LAST COST

This cost is the cost when this item was last purchased from your supplier. The last cost is used to calculate the List Price.

MARKUP %

The markup percentage is used to calculate the List Price. Enter a 30% markup as 30.00.
Alternatively, press <F4> to enter a desired margin to be used to calculate the markup %. The Margin is calculated as a percent of the (Sale Price less Cost) divided by Sale Price.

RESET LIST

Type Y (YES) to recalculate the List Price, based on the Last Cost and the Markup.
Type N (NO) to leave the List Price unaltered by the markup.

LIST PRICE

This is the suggested selling price. It prints on Price Lists for sales items and appears during invoicing.

List Price = Last Cost x (1 + Markup)
$1.50 = $1.00 x (1 + 50%)

Non-Bulk Rental Product List Price Formula based on Revenue:
The selling price of a non-bulk rental asset can be calculated on the product's base list price reduced by a percent of the revenue generated by the equipment during its rental life.
This formula is utilized when a discount percent of revenue off list is set up for the product's group in Groups. A maximum discount percent can also be set, to limit how much the list can be reduced.

Press <F4> to view the base list price of a non-bulk rental asset. If this base value is changed, the List Price is recalculated accordingly.

Price Change History:
Any changes made to the List Price or Base List Price are tracked.
Press <F4> in either of these price fields to view the Price Change History log for this product.
The Date/Time, Old List, and New List price are displayed with the type of list when relevant. Press <F9> to also view the Division/Operator.
If the feature to Prompt for Reason Codes is activated in the Company Security Parameters, the Reason for the price change is also tracked.

An audit report on Price Change History can be generated from Product Value Override Report.
Price changes are also included in the more general Override Report.

Expanded Record

Press <F9> to view the product description and to access the Alternate List Price field. The Alternate List Price can be adjusted.