Stocking items with hazard charges.

Post date: Jan 15, 2012 11:04:16 PM

Procedure for stocking oils and other fluids/chemicals that have hazard charges applied to them on the invoice.

• The Post AP function on the main ROWriter screen or in the accounts payable module must be used.
• The part/oil/chemical should be stocked into "inventory" using the normal calculations for quantity and price. However, the hazard fees should no longer be added into the cost of the oil or chemical. The cost should only reflect actual cost of material.
• The remaining fees for hazard, drum cleaning, what have you should be billed to "cost account" and "COGS-Hazard"
• The part must be included in the category "Oil" or "oil and fluids" so that the fees will be applied.

What this allows us to do is sell the product at an accurate price and reflect it on our invoice accurately for our customers. The adverting of any oil out in the rest of the world does not include the numbers that we add into our cost.