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This screen allows purchase orders to be created with the costs being charged to different ledgers. The costs are charged directly to the ledger specified. There is no receipting process. For example, if a purchase order is made against an inventory item, the stock on hand quantity and the item cost is updated directly from the purchase order.

 

This purchase order becomes the supplier invoice which has to be authorised for payment.

 

The screen can be used to enter supplier costs direct from the suppliers invoice, that is bypassing the issue of a purchase order. If you are entering direct from suppliers invoices and you want to enter the Invoice#, click on Options (Alt+O> and select Supplier Invoice? This option will allow the cursor to stop on the Invoice# field.

 

Line Types

 

 

 

When charging to a job, an inventory or non inventory item can be selected to obtain an item description, or Item can be left blank. When the Item is blank or contains a non inventory item, the cursor will position on the Item description field.

 

 

To Charge Items To A Job

 

 

 

 

 

 

 

 

 

 

 

Inventory Items

 

Entering Correct Quantities And Unit Price

 

It is critical that you order inventory with the correct quantities and unit prices.

 

Example:

 

For an item, the inventory cost is .10c EA, and the Retail Sell Price is .20c EA, and the item is recorded and sold as EA's.

 

 

If the item is purchased in packs of 100 then the item MUST be ordered as

 

 

 

It MUST NOT be ordered as:

 

 

 

If the item is ordered as the pack quantity, the Last Cost will be recorded as $10.00 EA and the system will recommend the retail price be increased to $20.00 EA. The moving average cost also becomes incorrect, causing wrong stock valuations.

 

To prompt users of this possibility, a Warning Window will be displayed if the UnitPrice entered differs from the Last Cost by more than 10%.

 

 

Calculation Of Moving Average Cost

 

For inventory items, if the current quantity on hand is zero or minus, the moving average cost will be changed to the item cost of the stock receipt. You will be asked to confirm that the unit cost value is correct.

 

A moving average cost is maintained for all inventory items even when the costing method is Last Cost or Standard.

 

For Cost Of Sales, the product group costing method is used. For items using Moving Average Cost for costing, and the moving average cost is adjusted because of a zero or minus quantity on hand, an adjustment is made to cost of sales for the difference between the previous and current item costs.

 

Transaction:

 

 

Cost of sales adjustment calculation:

$7.30   - $6.25  =  $1.05 x  4  =  $4.20                

 

 

Freight & Other Charges

 

These add on costs can be handled in two ways:

 

 This ensures that the items Last Cost and Moving Average Cost reflect the actual

 costs of product into store.  Click on the Freight Button to apportion these costs to

 the item costs.

 

 Use a Non Inventory Product Code, such as FREIGHT, and create a line for the

 freight value.

 

 

GST

 

GST-Types

 

 

The GST Amount can be changed if the GST Type is = X or S. The change window is accessed via the Change GST Amount button. The GST Type will be changed to S by the system if the GST amount is changed.

 

GST O/ride?

This override can be used if:

 

 

 

 

 

Entering a Zero Quantity

 

Entering a zero quantity is possible if the LineValue type is used. Once the LineValue is entered the Quantity can be changed to zero.

A zero quantity is required when a price adjustment has to be made. The line comment can be used to record the calculation basis. Also refer to the use of the request for credit.

 

 

Default Unit Price

 

The Unit Price that is selected will be either:

The item's last cost if there is one   or

The item's current cost based on the costing method used.

Note that the item's last cost is created when the purchase order has been authorised for payment.

 

 

Allocate To A Job

 

Charge Rate Calculation

 

A charge rate is selected based on the following logic and priority.

 

 

 customer's price type for the job. Any inventory markup for the job will be added

 to the price. If a promo or customerised price is selected, any inventory markup for

 the job is ignored. Customerised discounts will be selected.

 

 appropriate markup for the job. For a material transaction (JM), the material markup

 is applied.  For a sub contract transaction (JS), the sub contracts markup is applied.

 

Changing the value

 

 

 

 

 

Updating Item Last Cost

 

The supplier last cost is updated only when the purchase order is authorised for payment and where the item is purchased for stock.