Costing & Pricing

You can link a Costing (also known as the Bill of Material or BoM for short) to Items, as well as their sell price, or Pricing.

A linked Estimate can be created by right-clicking on the Costing record and selecting Create Estimate. If an Estimate has already been linked to the Costing, it can be opened by selecting Open Estimate from the popup menu.

A Barcode field is available on Items > Costings which means a barcode scanner can be used to add items to Transactions that use Supplier Prices or Estimated Prices.

Navigation

Main Menu > Items > Items > View > New/Edit > Costing & Pricing

In the Costing window, multiple Cost Prices can be loaded to an Item for different Suppliers, Units, or Quantities. Costing Items can be linked either to a Supplier or to an Estimate Item on a Costing Transaction.

1. Status - Default: Active. This is the Status of the Price. Only Active Costs and Prices will be available for selection on transactions and Estimates.

2. Supplier - Costing Items can also be linked to the Suppliers from which they can be purchased. The Adj% can be used to record the discount you typically receive. This means users are able to update the database with a Supplier's list price which will automatically be converted to your actual prices. When a Costing Item is added to a Supplier Transaction, the Supplier on the Transaction will automatically be set to the Supplier on the Costing Item - provided the Supplier on the Transaction is blank. If the price is linked to a Supplier, then the Supplier name will appear here.

3. Estimate - Costings are typically linked to an Estimate when the product is manufactured. The module used for Costings, is specified in Settings > General. If a Costing is linked to an Estimate, the Unit must be set to one of the Material Items Units. When an Estimate is updated, the Costing prices linked to the Estimate are also updated. Estimates that are linked to Item Costings, can not be deleted. When a Costing Item which is linked to an Estimate is added to a Transaction Type that uses Estimates, the linked Estimate will be added to the Transaction. If the price is linked to an Estimate, then the Costing Number will show here.

4. Cost Centre - This allows you to link an Item to a Cost Centre. This is also useful when creating Service Items.

5. Reference - This is where a Supplier reference, if any, will appear.

6. Unit - This shows the Unit of the Price.

7. Currency - This allows you to specify which currency the Item is costed in, in the event that it is different to the sale price currency.

8. VAT Type - This sets what VAT Type is applicable to the Price. These options are populated from the VAT Type setups.

9. Unit Price - This shows the Total Cost Price for the input quantity.

10. VAT - This specifies whether or not the Total Price (Unit Price) is excluding or including VAT.

11. / - Per Quantity. This shows what the Costing is per the specified quantity. Eg, paper may be supplied in batches of 1000 pages, so / would be /1000.

12. Adj % - This shows the markup on the cost price of the Item as a percentage.

13. Total (Currency) - This shows the total cost in the specified currency.

14. Total (exc) - This is the Total excluding VAT and shows the Total Cost Price. This is calculated as follows: (Unit Price / Price Qty) + Adj%.

15. Min Qty - This shows the Minimum Quantity that can be ordered from this Supplier. If the Minimum Quantity is greater than 0, it will be applied when the Item is added to a Transaction.

16. Lead Days - This determines the number of lead days required for a Supplier to deliver new stock, or for a Work Order to produce new stock.

17. Status - This shows the Status of the Pricing. Only Active Costs and Prices will be available for selection on transactions and Estimates.

18. POS - This checkbox will specify if the Item Pricing is available on POS module.

19. Est - This checkbox will specify if the Item Pricing is available in the Estimating module.

20. Unit - This is the unit of the Item.

21. Set Cost - This is an estimated cost which is used for Estimating as well as for Inventory transactions. These could be set manually (Manual) or Auto which cascade from specific Costings (Auto Unit Costs) or from the Highest or Lowest costing.

22. Cost from - This allows you to specify where the application must source Costing from. When Cost from is set to Highest / Lowest, only the Active Costings are used. When a specific Costing is selected, it is used regardless of the Status of the Costing.

23. Cost Adj % - This is the markup of the Item's Costing as a percentage.

24. Unit Cost (exc) - This is the cost of the unit excluding VAT.

25. / - Per Quantity. This shows what the Costing is per the specified quantity. Eg, paper may be supplied in batches of 1000 pages, so / would be /1000.

26. Set Price - This is used when selling the product. These can cascade from the Cost (Auto) or directly from the Costings (Manual).

27. Price from - This allows you to specify where the application must source Price from. When Price from is set to Highest / Lowest, only the Active Costings are used. When a specific Costing is selected, it is used regardless of the Status of the Costing. You can choose from Cost Price, Lowest Costing, Highest Costing, or a specific Costing.

28. VAT Type - This allows you to select a VAT Type specifically for this Item.

29. VAT - This shows if the Item is priced VAT inclusive or exclusive.

30. Price Adj % - This is the markup on the Item's pricing, shown as a percentage.

31. Round - This allows you to round the Unit Price to the nearest specified amount.

32. Unit Price (exc) - This is the Unit Price excluding VAT.

33. Unit Price (inc) - This is the Unit Price including VAT.

34. / - Per Quantity. This shows the Price per the specified quantity.

Setting up

Costs and Prices can be Fixed (for any qty) or per Unit or a combination of Fixed and per Unit. eg. the cost of a tour could be 1000 fixed (for the van) plus an additional 200/person or a printed product might have a Setup Cost of 1000 plus an additional unit cost of 1.20 each.

When setting up a Service Item, there are fields in the Field Chooser that are applicable to Service costings, such as Setup, Hourly Rate, etc. These can be dragged into the Costing panel to calculate your Service costs.

Price Lists

Price Lists can be used to setup special prices or adjustments for an Item Category, an Item or even the Unit of an Item. One or more Price Lists can be linked to a Customer and only apply to Selling Prices and, therefore, Transaction Types that use Selling Prices.

The Item Pricing is automatically updated from the linked Costing. Price update options include:

• Unit Cost - The Item's Unit Cost is updated to that of the linked Costing. This is recommended where there are no Setup / Fixed Cost in the Costing.

• Fixed Cost & Unit Cost - A Fixed Cost (Setup Cost) and Unit Cost is extracted from the Costing to update the Costing. This provides an automatic pricing structure where the Unit Price varies according to the Qty selected. If the Unit Cost is less than 1, it is converted to a Unit Cost / 1000.

Setup > Settings & Defaults > General Settings

• Items & Inventory > Transaction Type - Item Costings - Select the Transaction Type that will be used for Costings and ensure that Estimating is enabled on the selected Transaction Type.

• Items & Inventory > Item Costings update - Select from Unit Cost or Fixed Cost & Unit Cost.