Costing Model - Sales Price

A costing model is used to calculate sales prices in a sales price list. A costing model is general and can therefore be used by several different price lists.

When a costing model is entered in ‘Sales Costing Model. Open’ (OIS022), the calculation base for the model is also specified.

The valid calculation bases are:

1	Sale price according to item file
2	Purchase price according to item file
3	Inventory cost according to specified costing type and date
4	Purchase price costing according to specified costing model
5	Inventory cost according to date and specified costing type, or purchase price costing according to specified costing model, depending on each item’s code for the inventory record price
6	Basic price according to another specified sales price list

In order to define how the basic price should be affected when calculating the sales price, one or more costing element lines are entered in ‘Sales Costing Model. Open Lines’ (OIS023). This program is started by selecting option 11=Costing mod lns and option 12=Markup/order ln, respectively in ‘Sales Costing Model. Open’ (OIS022).

A costing element line uses general sales costing elements entered in ‘Sales Costing Element. Open’ (OIS015). The costing elements define how to calculate the price list’s calculation base using markups and markdowns in order to arrive at the price list’s basic price.

There are two types of sales costing elements – basic price elements and order-dependent elements.

Basic price elements are used to calculate the basic price. Order-dependent elements are used to calculate the sales price which is dependent on information from the order line. The final sales price of an item can, for example, depend on the ordered quantity or total weight. In this case, order-dependent elements are used. The final sales price is therefore calculated only after an order line is entered.