Costs & List Prices by Product Group

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

This program lists the products by Product Group, so that the costs and list prices for products may easily be changed for a specific group.
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 GROUP

Enter a product group number or select it from the lookup window.

SORT METHOD

Select one of the following sort options:

• Click the Product radio button to list the products in product number order for this group.
• Click the Description radio button to list the products in product description order for this group.

Resulting Paging Screen:

PRODUCT NUMBER

The Products will appear in Product # order or Description order within that product Group, so that costs and list prices in that group can be reviewed and changed as required.

DESCRIPTION

The product primary description is displayed.

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.

Note: Since the 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 The average cost should ONLY be altered if the inventory records are SEVERELY out of date.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 by Location Window

If Sales Item Average Cost by Location processing has been activated in the Support Application Parameters, the product average costs by location can be accessed in the window.

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.

Markup % Calculator Window

Alternatively, a margin can be entered in the window 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

Check this box to recalculate the List Price, based on either the Last Cost or the Markup.
Uncheck this box to leave the List Price unaltered.

LIST PRICE

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

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

Pricing Change Window:
The Pricing Change window appears only for Non-Bulk Rental Product in a Group that is setup to base the List Price 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.

This window displays the base list price of a non-bulk rental asset. If this base value is changed, the List Price is recalculated accordingly.

List Price and Base List Price Change History Window:
Any changes made to the List Price or Base List Price are tracked.
A window is provide on 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> or the EXP/CON button to also view the Division and 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.

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.