Sales cost
The product cost on a sales order line can be calculated from sales cost values on Level 1-4 PD Pricing Setup records. Sales costs reflect the cost of products based on your vendor contracts. A sales cost is used as the product cost when the pricing record is applied to a sales order line.
To activate this feature, select the Use Sales Cost option in SA Administrator Options-Products-Pricing.
You can include a sales cost on these types of pricing records if the pricing record is based on a cost-related value, such as cost, margin, rebated cost, or rebated margin:
- Customer/Product (Level 1)
- Customer/Product Price Type (Level 2)
- Customer Type/Product (Level 3)
- Customer Type/Product Price Type (Level 4)
The sales cost can be a fixed amount or a percentage of one of these product values:
- Base list or list price
- Replacement cost or standard cost
You can specify a percentage on Level 1-4 pricing records, but you can only specify a fixed amount on Level 1 and 3 pricing records.
The sales cost is calculated from these fields in PD Pricing Setup:
- Sales Cost
- Sales Cost Based On
- Sales Cost Amount
Typically, the product cost is determined by values from Product Warehouse Product Setup records, based on settings in SA Administrator Options-Products-Costs. If a sales cost is applied to a sales order line, it is not considered an override of the product warehouse cost. Sales costs are standard costs, whereas cost overrides are applied manually. You can manually override the sales cost on a line item using the Cost field in the Extended Fields section in Sales Order Entry-Advanced Line Entry. If you override the sales cost, the pricing record is disassociated from the line item.
The sales cost for a special sales order line that is sourced to a purchase order does not update the purchase order line. Instead, the purchase order line is priced using the current pricing rules.
A sales cost can be applied to a sales order line whenever line pricing occurs, including line creation through BODs, API calls, and imported spreadsheets. If a sales cost is applied to a line, it is used anywhere that the product cost would be used, such as on reports and to update Sales Manager. The sales cost is displayed in Sales Customer Pricing Inquiry in the PD Cost field.
If a sales cost was applied to a special line or direct order line, it is not updated when the tied purchase order or warehouse transfer is received. Instead, the cost from the receiving line is saved internally and is used to calculate GL cost during invoice processing.
If you use the pricing worksheet in Sales Order Entry and Sales Customer Pricing Inquiry, the sales cost affects pricing calculations if you apply Cost + or Margin % pricing.
The sales cost, instead of the system pricing cost, or PD cost, which is determined by settings in SA Administrator Options, is used during Sales Order Entry if these conditions are met:
- The pricing record is applied to the line item, based on the pricing hierarchy
- The price type of the pricing record is based on a cost-related value, such as cost, margin, rebated cost, or rebated margin
The sales cost can be an fixed monetary amount or percentage of the base or list price, or replacement or standard cost from the Product Warehouse Product Setup record. You can specify a fixed amount or percentage for the sales cost on Customer/Product or Customer Type/Product pricing records. You can specify a percentage for the sales cost on Customer/Product Price Type and Customer Type/Product Price Type pricing records.
A sales cost can be applied to a line item wherever line pricing occurs, including lines created from BODs, API calls, and imported spreadsheets. If a sales cost is applied to a line, it is used anywhere that the PD cost would be used, such as on reports and to update Sales Manager. The sales cost is displayed in Sales Customer Pricing Inquiry in the PD Cost field.
Sales costs are not applied to tied return lines.
To use sales costs and the pricing worksheets, users must be able to override costs and access the pricing worksheet. These settings in SA Operator Setup-Entry Options control this ability:
- Cost Override Option: A value other than Do Not Allow Cost Overrides must be selected.
- Price/Discount Info: Allow Entry must be selected.
If the sales cost is applied to a line, the internal cost override flag remains unselected. If you override the price of a sales order line, the sales cost does not change but the cost override flag is selected. Because changing the price disassociates the sales order line and the pricing record, the sales cost is now considered an override of the cost that would normally be determined. If you manually change the costs.
Mass maintenance of pricing records
You can use PD Mass Maintenance Entry to update the sales cost information on Level 1-4 pricing records. The Sales Cost Type, Sales Cost Based On, and Sales Cost Amount fields are included in the Price Records grid on the main page and in the General section on the price record detail page. The fields are also included when you export records.
When you import records, values for the sales cost fields are validated. When the Sales Cost Amount is not 0 and the Sales Cost is % Current, then the Based on value cannot be None. On Customer/Product Price Type (Level 2) or Customer Type/Product Price Type (Level 4) records, only % Current is valid as the Sales Cost value.
During invoice processing, GL costs are recalculated. SM costs are also recalculated if the internal cost override flag is selected. The cost on a line that meets these criteria is recalculated using the sales cost:
- The line qualifies for SM cost recalculation.
- The price for the line item is from a pricing record with a sales cost.
Sourcing and receiving
If a sales cost was applied to a special line or drop ship line, the sales cost is not applied to the source document. During receiving of the source document, a check is performed to determine if the tied special line or drop ship line was priced by a pricing record with a sales cost. If a sales cost was used on the tied sales order line, it is not updated with the cost from the receiving line. Instead, the cost from the receiving line is saved internally and used to recalculate the average cost in Product Warehouse Product Setup.
The same check is performed when a purchase order is costed in Vendor Invoice Center Entry. If the cost is changed during the costing process, the tied sales order lines are not updated if line was priced by a pricing record with a sales cost.
Copying a sales order
If you copy an order with a sales cost, the sales cost from the original order is cleared if the Reprice option is selected. If the new order is repriced by a pricing record with a sale cost, the status of the Recalculate SM Cost option does not affect the costs on the new order. If you do not reprice the new order but you select Recalculate SM Cost, a check is performed to determine if the lines were priced by a pricing record with a sales cost. If it was, the price and cost of the line is not updated and the SM cost is the same as the sales cost.
If the ReCalc SM Cost option is selected, but it is not repriced, and the line's Price and Cost Override flags are No, then the line is checked to see if it was priced already by a PD Price Setup record with a sales cost. If it was, then the cost is not changed.