Need work around for different item cost ???????

Solution #1: All tomatoes & Adirondack chairs are created equal. Retail price consistent regardless of supplier. One ILC for TOMATO or ADIRONDACK. Multiple suppliers for each item. Enter cost from supplier on PO, receive. RMS should average costs for you (for cost options, look at SO Manager Configuration).

Solution #2: Farmer Brown's tomatoes are not the same as farmer White's. Different retail prices. Separate ILCs. One supplier for each item (could be multiple). Again, RMS will use the costing method specified in SO Manager Configuration.

Hope that helps, Tom

I tested multiple cost enter from different PO and deferent venders it doesn?t change the item cost to the average and when I run a profit report it seems only to use the cost entered in the item properties. Is this fixed in

Thanks Al

"Terrible Tom" wrote:

I tested multiple cost enter from different PO and deferent venders it doesn?t change the item cost to the average and when I run a profit report it seems only to use the cost entered in the item properties. Is this fixed in

Thanks Al

"Terrible Tom" wrote:

It works fine here. make sure you have weighted average selected in Manager | Configuration . This way when you enter costs into the PO before you commit them it will update the supplier cost and average it into the item cost when you commit the PO. By the way, what version do you have? I'm running 1.3.1006 Craig

Al,

There seems to be endless confusion between Item Cost (the cost on the item general properties tab) and Supplier Cost (the cost on the Supplier tab).

The cost on the supplier tab has little to do with cost of goods sold. The only cost that matters for COGS is the Item Cost. The supplier cost is mainly there to assist with PO creation and receiving. When you receive a PO, whatever cost you have on the PO is used to adjust the item cost (using weighted average or last cost, depending on how you are configured). This may or may not equal the Suppllier Cost for any supplier. If you have never received an item from a supplier, the cost on the supplier tab will have absolutely no effect on COGS or inventory value. Again, receiving items on a PO is how the Item Cost gets updated.

Now, when you adjust the Item Cost, it will not change COGS for previous sales. COGS is calculated based on the Item Cost that is present AT THE TIME OF THE SALE. Future changes to the item cost will have no effect on prior sales.

It is important to realize that you have different "costs" to deal with. Your supplier cost may not necessarily be the cost at which you receive the item - you may change the cost on the PO to reflect new supplier pricing, for example. And depending the quantity of the item you already have in stock, and at what item cost, the PO cost at the time of receiving may or may not adjust the item cost (which will affect FUTURE sales).

Hopefully that clears things up a little. It's easier to understand if you are looking at the "guts" of the database. The user interface does a pretty poor job of indicating how these costs are used, and we all know how "great" the documentation is!

Jason