Tally adjustment factor

The tally adjustment factor is the extended cost of the tally parent product divided by the sum of the extended cost of the tally components. This formula shows the basic calculation of the tally adjustment factor:

• (actual quantity ÷ 1000) * price/ (total quantity ordered times replacement or last cost ÷ 1000)

If the vendor’s invoice shows a different cost than the cost recorded during receipt, the cost of the tally parent product is changed. The variance is distributed proportionally to the components if Use the PO Adjustment Factor For Tally Components is selected in SA Administrator Options-Products-Defaults.

When you enter a tally on a purchase order, the adjusted cost is the component’s replacement or last cost multiplied by the adjustment factor. If a tally price or net amount on the vendor’s invoice is different than the purchase order, the adjusted costs for all tally components are recalculated when the vendor’s invoice is costed.