6. Available costing bases

Common costing bases

You can select among the following costing bases for both purchase costing and distribution costing:

• Purchase price in 'Purchase Agreement. Open' (PPS100). The agreement is identified based on the supplier entered for the item on 'Item. Connect Warehouse' (MMS002/F).*
• Purchase price in 'Supplier. Connect Item' (PPS040).
• Purchase price in 'Item. Open' (MMS001).
• Average cost.
• Price on the latest invoice in the purchase statistics that is recorded on the date entered in the 'Purchase price date' field in 'Purchase/Distribution Costing. Calculate' (PCS280).
• The price that is the lowest of the average cost (alternative 4) and the invoice price (alternative 5). If one of these values is 0, the other one is selected.
• Cost in delivering facility.
• Internal transfer price (costing base for distribution costing only).

* Instead of having separate agreements for each supplier, you can have a general purchase agreement for a simulated supplier.

Costing bases specific to distribution costing

The following costing bases can only be selected for distribution costing:

• Cost in delivering facility (costing base for distribution costing only)
• Internal transfer price (costing base for distribution costing only).

Where selected

For purchase costing you define the default priority order for what value to use as the costing base on 'Settings – Purchasing' (CRS780/F). For distribution costing the default priority order is defined in 'Settings – Product Costing' (PCS001). In both cases you can override the default order when costing items in 'Purchase/Distribution Costing. Calculate' (PCS280).