Product cost overrides in Sales Order Entry

When the cost of a product is changed in Sales Order Entry, it affects costs in inventory and the General Ledger.

These costs are maintained for products:

  • Costs posted to Sales Manager (SM)
  • Costs posted to GL

The product cost that is used for each of type of cost is selected in the Post to S/M By and Post to G/L By settings in SA Administrator Options-Products-Costs. You can select the average, standard, replacement, last, or FIFO cost. The costs are stored on Product Warehouse Product Setup records.

These settings on your SA Operator Setup record determine if you can view and change the costs on sales orders:

  • Allow User to View Costs: Determines if you can view product costs. When Yes is selected, the value in the Cost field for a sales order line item is the product cost that is posted to SM.

  • Cost Override Option: Determines if you can override costs by line type for non-labor products, or both labor and non-labor products, depending on the Product Type Cost Override setting.

  • Product Type Cost Override: Determines if you can override labor product costs by line type.

When the default cost for a line item is maintained, the SM and GL costs are updated on the order. The costs are based on the current costs when the Sales Entry Invoice Processing Report is generated. The costs on the Product Warehouse Product Setup record are then updated.

When the cost of a line item is overridden, these events occurs:

  • The internal cost override flag is selected.

  • The SM product cost is updated with the sales override cost.

  • The GL product cost is updated from the Product Warehouse Product Setup record.

Note: When the order is a return merchandise (RM) order, the commission cost is not overridden. It is the same as the Product Warehouse Product Setup cost.

Special lines

When you change the cost on a special line item that is tied to a purchase order or warehouse transfer and then force-ship the ordered quantity, these updates occur during receiving:

  • The internal cost override flag is selected.

  • The product cost on the purchase order or warehouse transfer is updated with the SM cost from the sales order line.

When the Sales Entry Invoice Processing Report is generated, these updates occur for the tied special line:

  • The GL cost is updated to equal the SM cost.

  • The GL cost is posted as a debit to Cost of Goods Sold and a credit to Inventory.