Product Warehouse Product Setup - Costs field descriptions

Fields are presented in alphabetical order within each section.

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Costs

Addon Cost

Additional charges you incur in obtaining a product. The most common addon is the freight charge that is charged by your vendor or a third-party when a product is shipped to your warehouse. If you capitalize addons, the addon is added to the cost of the product. This passes the cost of your addons on to your customers and is referred to as a landed cost.

This field represents the average cost of the last addon processed through Vendor Invoice Center Entry - PO Costing and may be a negative amount. When a product is received, the addon cost is reaveraged, regardless of when you capitalize your addons.

The Cost Type Assignments options in SA Administrator Options-Documents-Purchase Orders-Costs gives you the options of including addons with the cost of products when Sales Manager and General Ledger are updated, for pricing, and when you calculate your sales representatives' commissions. The Cost Type Assignments Include Addons fields in SA Administrator Options-Documents-Purchase Orders-Costs control the capitalization of addons. If either one of these fields is changed, the other is also changed to ensure consistency.

When you use FIFO cost to update Sales Manager and General Ledger, the product cost is calculated on each line and includes the addon cost from the FIFO record when you run Sales Entry Processing Invoice Processing Report and Transfer Shipping Feedback Entry. The average addon cost is reaveraged when inventory is relieved.

Note: If this product exists in a Storeroom-managed warehouse, the customer balances are subtracted from the available balances when calculating the average cost and addon cost for distributor-owned inventory. The Balances section shows on hand and other balances that include both distributor- and customer-owned quantities.

Average Cost

The Average Cost field contains an on-going, perpetual weighted average cost for this product. The average cost is recalculated every time the on hand quantity changes. These examples show how quantities are calculated for Product Warehouse Product Setup:

Increases:
If On Hand + Received + Unavailable > 0 (Before Any New Quantities Are Added)
(On Hand + Received + Unavailable) * (Current Average Cost)
+ (Quantity Being Received ] * Cost Per Unit)
(New On Hand + New Received + New Unavailable) (The Amount After Quantities Are Added)
This is a summary of the net effect of this equation:
1. The old quantities are multiplied by the old cost.
2. The new total cost is added to the above.
3. The sum of the above is divided by the new quantities.
Decreases:
If On Hand + Received + Unavailable > 0
(On Hand + Received + Unavailable) * (Current Average Cost)
- (Quantity Being Reduced * Cost Per Unit)
(New On Hand + New Received + New Unavailable after update)
If any of the average cost calculations produce a negative average cost, it is set to zero. Average cost may be selected using the Cost Type Assignments options in SA Administrator Options-Products-Costs.
Note: If this product exists in a Storeroom-managed warehouse, the customer balances are subtracted from the available balances when calculating the average cost and addon cost for distributor-owned inventory. The Balances section shows on hand and other balances that include both distributor- and customer-owned quantities.

Cost Plus By

This field shows the SA Administrator Options - Products Costs Mark Up From option used to determine cost plus pricing. Sales Order Entry may use cost plus pricing to determine the correct price to charge the customer. Sales Order Entry allows a percentage to be entered to be multiplied against the cost specified in SA Administrator Options-Products-Costs-Cost Type Assignments. For example, a customer may be charged the cost of the product plus 20%.

DATC

The label you specified is displayed in the Screen Label field in SA Administrator Options-Products-Costs. If this field is not displayed, you do not use the surcharge option.

Foreign Replacement Cost

For use with foreign vendors. Typically, this field is used in conjunction with a setting in SA Administrator Options-Documents-Purchase Orders-Entry Defaults-PO Entry. In the Foreign Cost field, you select Use Replacement Cost During Entry to enable foreign replacement cost. When you select this option, and also specify a foreign replacement cost in Product Warehouse Product Setup, the cost specified is used by the system as the price when creating a purchase order (PO) line for a foreign vendor. The Foreign Replacement Cost field is similar to the Last Foreign Cost field, but is not automatically updated or overwritten during PO receiving, AP costing, or product import. The Foreign Replacement Cost field value does not change unless you manually change it. This cost is stored in the foreign currency of the Authorized Replenishment Path (ARP) vendor.

If you attempt to create a PO line with a foreign vendor other than the ARP vendor, messages are displayed: Cannot Cost a PO With a Different Currency From The AP Vendor (6115), or Warning: This Product has a different ARP Vendor (8021).

Note: A vendor is considered a foreign vendor if the Currency field on the Vendor Setup-General-Settings-Currency record is specified. If no currency is specified, the vendor has the same currency as the distributor and is considered a domestic vendor by the system. Be aware that, in the context of tariffs, a foreign vendor is not defined by currency, but by the source of the product. The Country of Origin (COO) is a product-specific code. It specifies the country where a product was manufactured, produced, or grown. The COO can then be associated with an HS Code (Tariff Code) and used with purchasing and accounts payable functions. HS Codes are set up in SA Tariff Rates Setup. The COO and HS Code can be assigned in product, catalog, product line, and product warehouse setups. If you purchase products from a foreign vendor, there may be a tariff assessed with the product during import. The tariff is not related to the replacement cost.

When a PO line is created, the hierarchy used to determine the price of the line is 1) vendor contract pricing, 2) vendor pricing, 3) vendor product cross reference, 4) whether the order is to a foreign vendor, and, if so, 5) use the Product Warehouse Product Setup-Costs last cost or replacement cost based on the SA Administrator Options-Documents-Purchase Orders-Entry Defaults-PO Entry setting in Foreign Cost. When enabled, the Foreign Replacement Cost is used regardless of where the PO line originated. For example, PO lines can be created in Purchase Order Entry, from the Purchase Entry Recommended Replenishment Action Report (PO RRAR), when processing an inbound PurchaseOrder BOD, and from a tie to a sales order, transfer, or value add transaction. The Foreign Replacement Cost field is included in these SX.API calls: sxapiICProductMnt, sxapiNPCreateClaim, sxapiPDRebateMnt.

The Foreign Replacement Cost can also be selected in rebate setup enabling you to use this cost when calculating the amount of the rebate. In addition, if you have enabled the enhanced foreign currency rebate process, you can use Foreign Replacement Cost with this process. The enhanced foreign currency rebate process enables you to setup, calculate, and display in the currency of the vendor or customer throughout the rebate workflow. The process is enabled in SA Administration-Administrator Options-Products-Rebates-Rebate Options-Foreign Rebates.

The Foreign Replacement Cost can be used where supersedes are created programatically, such as through Product Extended Product Cross Reference Setup or PI Entry Update Products Report. Foreign Replacement Cost can also be used for an implied or dirty core product.

GL By

This field shows the SA Administrator Options-Products-Costs options, Post to G/L By and Post to S/M By. Sales Order Entry cost of goods sold updates General Ledger.

Last Cost

For use with domestic vendors. This shows the last cost at which this product was purchased or received. This field is updated with the price if the Authorized Replenishment Path (ARP) has been followed in replenishing stock, regardless of the type of ARP specified on the Product Warehouse Product Setup-General record. If the ARP is not followed, the last cost is not updated.

This field is updated by Product Unavailable Inventory Entry, Purchase Entry Receipt of Inventory, Vendor Invoice Center Entry-PO Costing, and Transfer Entry Receipt of Inventory.

The last cost also defaults as the product cost when a purchase order is placed, if specified with the Use Which Cost During Entry option in SA Administrator Options-Documents-Purchase Orders-Entry Defaults.

Last cost may be selected using the Cost Type Assignments options in SA Administrator Options-Products-Costs.

Last Foreign Cost

For use with foreign vendors. Similar to last cost, but used when products are purchased from a foreign vendor. The amount recorded is in the currency of the vendor. This amount is used when entering purchase orders for the foreign vendor or generating PO RRAR.

LIFO Base Year Cost

Optional field. If you use LIFO, specify the base year cost for this product.

Rebate Cost

Separate cost to be used for rebates. PD Pricing Setup-Rebates uses this cost in rebate calculations if the Rebate Calculation Type in PD Pricing Setup-Rebates is Percent, Net Amount, or Guaranteed Margin and the Based On, Rebate From, Rebate Down To, or Margin Cost specified is Rebate.

Replacement Cost

For use with domestic vendors. The replacement cost is not updated each time a transaction takes place, as are the average and last costs. Each time the replacement cost changes as specified by the vendor, manually change the cost on this record, either directly or through PD Maintenance Entry, PD Administrator Price/Costs Update, and PD Administrator Future Price/Costs. It can also be updated automatically if you use Product Import to maintain product information through automatic updates from a pricing service or your vendor. If the replacement cost is changed on the pricing update, this value is updated during PI Entry Update Products Report.

The replacement cost defaults as the product cost when a purchase order is placed, if specified with the Use Replacement Cost During Entry option in SA Administrator Options-Documents-Purchase Orders-Entry Defaults. It may also be selected using the options in the Cost Type Assignments section of SA Administrator Options-Products-Costs.

Replacement Cost Date

The date the Replacement Cost field was last changed. The default date is initially the system's current date if the replacement cost was changed through Product Import, PD Maintenance Entry, PD Administrator Price Costs Update, or PD Administrator Future Price/Costs. This date is also updated if you use a third-party product, such as EpaCube, to manage your product and catalog data.

Product Import Change Date

This date applies if the product was imported using the PI Administrator Import File Report.

This date reflects the most recent import date that involved this product even if Product Setup, Product Warehouse Product Setup, or Product Catalog Setup records didn’t change. You can use this date to identify the last date a product was in an update file or updated by Product Import.

Standard Cost

The standard cost is user-defined. The standard cost could become the same as the replacement cost or not used at all. Each time the standard cost is changed, the date it was changed should be recorded as well.

Standard cost may be selected in Cost Type Assignments options in SA Administrator Options - Products - Costs to update SM/GL, calculate prices or calculate commissions.

Changes to the standard cost can be made either directly or updated by PI Entry Update Products Report, PD Maintenance Entry, PD Administrator Price Costs Update, or PD Administrator Future Price/Costs.

Standard Cost Date

The date the standard cost was last changed. The default date is initially the system's current date if the replacement cost field was changed through PD Maintenance Entry, PD Administrator Price Costs Update, and PD Administrator Future Price/Costs.

Customer Costs

The Customer Costs section is only displayed if the Managed Warehouse option is selected in Product Warehouse Description Setup-Storeroom.

Average Cost

The Average Cost field contains an on-going, perpetual weighted average selling price for this customer-owned product. The distributor’s cost is not used in determining the customer’s average cost. Average cost is recalculated during Sales Entry Processing Invoice Processing only. These examples show how quantities are calculated from the Customer Balances in Product Warehouse Product Setup-Costs:

Increases:

If On Hand + Received + Unavailable > 0 (Before Any New Quantities Are Added)

(On Hand + Received + Unavailable) * (Current Average Cost)

+ (Quantity Being Received * Cost Per Unit)

(New On Hand + New Received + New Unavailable) (The Amount After Quantities Are Added)

This is a summary of the net effect of this equation:

The old quantities are multiplied by the old cost.
The new total cost is added to the above.
The sum of the above is divided by the new quantities.

Decreases:

If On Hand + Received + Unavailable > 0

(On Hand + Received + Unavailable) * (Current Average Cost)

- (Quantity Being Reduced * Cost Per Unit)

(New On Hand + New Received + New Unavailable after update)

If any of the average cost calculations produce a negative average cost, it is set to zero. Average cost may be selected using the Cost Used for Customer Product option in Product Warehouse Description Setup-Storeroom.

Fixed Cost

To always use a fixed cost, instead of average or last, specify a value in this field. This cost is used on the sales order line when a customer-owned product is issued in Storeroom if you selected Fixed for the Cost Used for Cust Product option in Product Warehouse Description Setup-Storeroom. It is never updated by the system.

If you are setting up a distributor-owned product in a Storeroom warehouse that may be used as a component in a kit with other customer-owned components, we recommend you specify a cost in the Customer Costs-Fixed field. This ensures the correct kit component costs are rolled up in to the kit.

Last Cost

The last selling cost at which this customer-owned product was purchased or received

This field is updated by Sales Entry Processing Invoice Processing and KP Work Order Center Entry.

Last cost may be selected using the Cost Used for Customer Product option in Product Warehouse Description Setup-Storeroom. The last cost is also the default value as the product cost when a purchase order is placed, if specified with the Cost Used for Customer Product option.

Balances

The Balances quantities are always applied to the stocking unit. Quantities per " " represents the stocking unit entered on the Product Setup record for this product.

Back Ordered

Each time a product is back ordered through Sales Order Entry, this balance is increased. When the back orders are filled through Sales Entry Processing Back Order Fill or manually, the back order quantity is decreased and the product is reserved.

Committed

The committed quantity is a result of the product being picked from the warehouse. When an order is initially placed in Sales the quantity is placed in the Reserved field. When the pick tickets are printed, the Reserved quantity is decreased and the Committed quantity is increased. The Committed quantity is decreased when the order is invoiced through Sales Entry Invoice Processing Report.

You may have integrated with Infor Service Management. If so, if you specify a rental warehouse and a rental product, a Service Management API call is made to Service Management to verify the quantity and status of the rental product or serialized rental product. The quantity and status that are returned in the API call are displayed in this field. The quantity is increased by the quantity currently rented.

Demand

If a warehouse transfer or prebuilt kit work order is created, but cannot be completely finalized because the quantity shipped is less than the quantity ordered, this field will be updated.

This field can be compared to a transaction with a customer where the quantity shipped is less than the quantity ordered. Instead of creating a back order for the customer's request and updating the quantity in the Back Order field, the transfer or work order creates demand and updates the Demand quantity.

Net Available

The Net Available quantity represents the quantities available for sale. If the quantity ordered through Sales Order Entry exceeds the Net Available, a back order may be created.

Net Available = On Hand - Reserved - Committed

Note: If this product exists in a Storeroom-managed warehouse, the customer net available is included in the Net Available amount. Customer net available is calculated based on total quantity from all sales order lines in stage 1, 2, or 3, that are not lost business, and are customer-owned.

On Hand

The On Hand quantity is the total quantity you currently have on hand for this product. This includes the gross quantity available for sale but not those that are damaged or considered unavailable.

Note: If the On Hand is zero, you can make changes to the Status, Product Category, Stocking Unit, and Kit Type fields in Product Setup. You must also have level 4 or higher security in SA Operator Setup-Function Security for ICSP.

On Order

The On Order balance is the quantity that has been placed on order with a vendor or warehouse, regardless of the product's ARP. This field is updated by placing an order in Purchase Entry or an approved order in Transfer Entry. It is decreased when the order is received.

Received

The Received balance is for the quantities that have been received through Purchase Entry Receipt of Inventory or Transfer Entry Receipt of Inventory or KP Work Order Center Entry but not yet distributed.

Received items are not considered available for sale until Sales Entry Processing Back Order Fill Report is completed or the received quantities are moved to the on hand balance during Purchase Entry Receipt of Inventory, Transfer Entry Receipt of Inventory, or KP Work Order Center Entry.

This is dependent upon the setting for Once Completed, in SA Administrator Options-Documents-Sales Orders-Back Orders. If this option is Move to On-Hand or Both Move and Delete, the quantity received is moved to the quantity on hand balance, and you must manually allocate quantities to the back orders. If you select Neither, the quantity received remains intact. Back order quantities can be allocated in Sales Shipping Feedback Entry.

During Sales Entry Processing Back Order Fill, the received quantity is used to fill Transfer, Sales, or Kit Production back orders. After back orders are filled, the remaining quantities are added to the on hand quantity.

Reserved

The Reserved quantity is the quantity currently reserved for sale to customers or transferred to warehouses. This does not include the quantities that have already been picked and staged for the customer. Those quantities update the Committed amount.

This quantity is increased by orders entered in Sales Order Entry or approved transfers in Transfer Entry. The quantity is decreased when the product is picked through the Sales Entry Pick Tickets Report and the Transfer Entry Print WT Report.

Unavailable

The unavailable quantity is updated from several sources:

Product unavailable transaction types
Sales Return Merchandise (RM) orders, Stock Orders (SO), and Counter Sales (CS)
Purchase Order Return Merchandise (RM) purchase orders can increase or decrease the unavailable quantity

The unavailable quantity can be used for products returned that have been damaged, products used for demonstration purposes, products currently in repair, and so on.

Warehouse Transfer In Transit

This balance is only relevant to warehouse transfers. The In Transit field represents those quantities that have been transferred from the ship-from warehouse but have not been received by the ship-to warehouse.

When a warehouse transfer is shipped, the In Transit field is increased. After the transfer is received by the ship-to warehouse, the quantity is decreased in the ship-from warehouse. If an error has been made and the ship-to warehouse received a greater quantity than ordered, the In Transit field may become a negative number until an adjustment is made to correct the error.

Warehouse Transfer Receipt Requests

Refer to the Warehouse Transfer Ship Requests field description.

Warehouse Transfer Ship Requests

The Warehouse Transfer Ship Requests field may be used when warehouse transfers are created. The Approval Type field in the Warehouse Transfers section of Product Warehouse Description Setup-Extended is used to determine if ship requests are affected. This Approval Type field has three options: Approve, Requested, and ARP Approved.

The Requested option is used in combination with the Approval Whse field in SA Operator Setup-Entry Options-Other Entry Options.

If the warehouse specified in the Approval Whse field is set to the warehouse Transfer's ship from warehouse or is set to "*", the status of the warehouse Transfer is always Approve. Otherwise, the warehouse Transfer uses the Approval Type specified in Product Warehouse Description Setup.

If the warehouse specified in the Approval Whse field does not match the ship from warehouse on a transfer, the status of the transfer is considered Requested and must be manually approved before the transfer can be shipped. The quantity requested for transfer is added to the Warehouse Transfer Ship Requests quantity in the ship from warehouse and the Warehouse Transfer Receipt Requests quantity in the ship to warehouse. The warehouse transfer stage is set to Entered and the line item approval setting is Requested.

After the warehouse transfer is approved at the ship to warehouse, the quantities in the Warehouse Transfer Ship Requests and Warehouse Transfer Receipt Requests fields are decreased, and the product is reserved with the ship from warehouse and placed On Order in the ship to warehouse.

If the Approval Whse matches the shipping warehouse, the Warehouse Transfer Ship Requests and Warehouse Transfer Receipt Requests are not affected.

Customer Balances

The Customer Balances section is only displayed if the Managed Warehouse option is selected in Product Warehouse Description Setup-Storeroom.

On Hand

The On Hand quantity is the total quantity you currently have on hand for this customer-owned product. This includes the gross quantity available for sale but not those that are damaged or considered unavailable.

On Order

Received

Received items are not considered available for sale until Sales Entry Processing Back Order Fill is completed or the received quantities are moved to the on hand balance during Purchase Entry Receipt of Inventory, Transfer Entry Receipt of Inventory, or KP Work Order Center Entry. This is dependent upon the setting for Once Completed, in SA Administrator Options-Documents-Sales Orders-Back Orders. If this option is Move to On-Hand or Both Move and Delete, the quantity received is moved to the quantity on hand balance, and you must manually allocate quantities to the back orders.

If you select Neither for the SA Administrator Options-Documents-Sales Orders-Back Orders Once Completed option, the quantity received remains intact. Back order quantities can be allocated in Sales Shipping Feedback Entry.

Unavailable

The unavailable quantity is updated from these sources:

Product unavailable transaction types
Sales Return Merchandise (RM) orders, Stock Orders (SO), and Counter Sales (CS)
Purchase Order Return Merchandise (RM) purchase orders can increase or decrease the unavailable quantity

The unavailable quantity can be used for products returned that have been damaged, products used for demonstration purposes, products currently in repair, and so on.