SA Administrator Options - Products - Costs field descriptions

Select this option to allow the Price field to be updated in Product Extended Product Cross Reference Setup for an alternate vendor product with the cost paid on the vendor’s invoice in Vendor Invoice Center Entry. When you cost the vendor’s PO in Vendor Invoice Center Entry, you can determine if the vendor’s price should or should not update the Price of the alternate vendor product.

For example, if the vendor offered the product at a special price not to be repeated, you may not want the Price field to be updated on the Product Extended Product Cross Reference Setup record. The option Update ICSEC Cost in Vendor Invoice Center Entry on the PO Line Detail view should not be selected in this case.

The Update ICSEC Cost option is available only if you select the Allow Override of Last Cost Update in ICSEC option.

The inside and outside salesreps commissions are calculated by the Sales Entry Processing Invoice Processing Report. If commissions are calculated based on margin, specify which cost to calculate the margin. If you select FIFO here, you must also select FIFO for the Post to G/L By option.

Select this option to block the update of the sales order line special product cost during Purchase Receipt of Inventory Entry or Transfer Receipt of Inventory Entry with the received cost. Instead, the PO or WT cost is rolled to the internal Received GL Cost field for the line. The Product Cost on the sales order line will remain as the cost from the inventory record and is not overridden. This ensures the cost on the line only updates the cost used to calculate commissions, as defined on this SA Administrator Options-Products-Costs screen.

To ensure that inventory is balanced between PO or transfer receiving and invoice processing, the Inventory control account is still updated with the received cost.

This option should be selected to avoid using special, discounted pricing on products to calculate commissions paid to salesreps based on margins. Margins for special products based on the received cost may be overstated, thus resulting in inflated commissions.

This option applies only to lines marked as Special on sales orders and tied to purchase orders or transfers, including kit components. It does not apply to special line items or components tied to KP or VA work orders.

Select this option to include the addon cost from the product record to the cost selected in the Calc Commisions From field. The cost and addon cost are added together before they are subtracted from the price and discount to yield the margin.

Select this option to include the addon cost to the cost from the Mark Up From field when the product price is being determined for Sales Order Entry. Including the addon cost passes the addon cost to your customers.

Select this option to include the addon cost with the cost updated to Sales Manager and General Ledger. The addon cost is the cost of the last addon received or costed through Purchase Order.

This option determines if the Product Trial Balance of Stock Inventory Report includes the Product Warehouse Product Setup addon cost. If you are capitalizing addons but have not selected this option, the Product Trial Balance of Stock Inventory Report includes the addon cost.

If you change this field, the Capitalize Addons field in SA Administrator Options-Documents-Purchase Orders Accounting is changed when you save your changes.

Select this option to include the addon cost when the product price is determined for Sales Order Entry. Including the addon cost passes the addon cost to your customers.

The cost options include Average, Standard, Replacement, and Last. If you reprice the product using cost plus pricing in Sales Order Entry, the cost specified here is used.

If any PD Pricing Setup records are based on cost, the cost you select here is used to determine the correct price.

When the Product Administration Month End Processing Report and Sales Entry Processing Invoice Processing Report are run, General Ledger is updated with the cost of each product. Use this option to determine the cost that is used.

If you select Average, Last, or FIFO cost, the last cost is used during Purchase Receipt of Inventory Entry. The last cost is updated to the price on the line item only if the ARP Vendor has been followed.

Regardless of the Post to G/L By cost method, average cost is recalculated each time the product is received (Inventory In). It is not recalculated for an Inventory Out transaction unless you are making a correction to a purchase order, or there is a roll-up of costs for a serial or lot item based on the setting in this section.

If the ARP Vendor has not been followed, the old last cost from Product Warehouse Product Setup-Cost is used to update General Ledger. In Vendor Invoice Center Entry, average cost is used and General Ledger is corrected appropriately.

If you select Standard or Replacement, then during AP Costing and determining Cost Adjustments, current IC standard or replacement cost is compared to the cost being costed. If they are different, then an IC Transaction record is created for a Cost Adjustment (CA Type) to show in Product Transaction Activity Report.

If you select Average, Last, or FIFO, during AP Costing and determining Cost Adjustments, the Received G/L Cost is compared to the AP Cost value to determine a cost adjustment or not.

When the Product Administration Month End Processing Report and Sales Entry Processing Invoice Processing Report are run, Sales Manager and General Ledger are updated with the cost of each product, respectively. Use this option to determine the cost that is used. The cost between Sales Manager and General Ledger cannot differ. Otherwise, it would be impossible to balance the records in each file to each other.

If you select Average, Last, or FIFO, the last cost is used in Purchase Receipt of Inventory Entry. The last cost is only updated to the price on the line item if the ARP Vendor has been followed.

If the ARP Vendor has not been followed, the old last cost from Product Warehouse Product Setup-Cost is used to update General Ledger. In Vendor Invoice Center Entry, average cost is used and the General Ledger is corrected appropriately.

If Roll Rebated Price on Prebuilt Kits in SA Administrator-Documents-Sales Orders-Processing is selected, the cost of a rebated component in a pre-built kit can be based on the Sales Manager cost. These conditions must be met:

• The price record for the pre-built kit is for a specific customer or ship to and is based on Rebated Margin or Rebated Cost.
• The rebates for the components are Vendor on Sale rebates and are based on Actual Cost.

If you select this option, costs are the actual cost for serial and lot products. Serial and lot products are set up in Product Extended Serial Number Setup or Product Extended Lot Number Setup. The average cost is recalculated if costs are rolled or FIFO is performed.

Do not select this option if the Post to G/L By option is Standard or Replacement.

When this option is selected, the updated cost in Sales Order Entry is used to reprice the line item. For example, in Costing Worksheet or Pricing Worksheet in Sales Order Entry changing the cost type or cost, or overriding the cost on the sales order line, that override is not changed when you click Apply.

If this option is not selected and changes are made in Sales Order Entry, the cost is applied from Product Warehouse Product Setup based on the selection in Cost Type Assignments options in this section.

If the Screen Label field contains a value, the DATC Method settings in Customer Setup-Ordering determine from which record the surcharge amount is derived.

If the customer DATC Method is Product Charge, the surcharge amount for eligible lines is derived from the DATC field in Product Warehouse Product Setup-Cost. If the amount in Product Warehouse Product Setup is zero, the amount on the Customer Setup record is used. If the amount in Customer Setup is zero, the value in the Amount field in this SA Administrator Options section is used.

If the customer DATC Method is Customer Charge, the surcharge for eligible lines is derived from Customer Setup. If the amount in Customer Setup is zero, the amount is derived from Product Warehouse Product Setup and then SA Administrator Options. You can override this amount without an authorization.

If the customer DATC Method is No Charge, the surcharge amount is zero on all eligible lines.

The lines to which surcharges are applied is based on the Type setting in this section. If Rush Line, Special Line, or Automatic is selected, the surcharge amount is derived from the record hierarchy described for each DATC Method. If User Set is selected, the value in the Amount field in this section is used.

This setting determines whether you pass special handling charges your vendor charges you to your customer. These charges are most often levied against a particular product instead of an entire order. Additionally, you can elect not to pass these charges to all your customers.

Use of this field determines whether the surcharge field displays in Product Maintain Balance Entry, Customer Setup, and Sales Order Entry. The label is displayed in reports where the surcharge displays. Leave this option blank to indicate that you do not use surcharges. The Type and Amount fields are ignored and surcharge fields do not display.

If the Screen Label field contains a value, the value in the Type field determines which surcharge amount is levied:

• Select Rush Line to apply surcharges to Sales Order Entry line items that have the Rush option selected.
• Select Special Line to apply surcharges to eligible Sales Order Entry line items with a line type of Special.
• Select Automatic to apply surcharges to all eligible lines. If you select this option, the value in the Amount field must be zero.
• If you select User Set, you must specify a default value in the Amount field.

Dirty core and implied core charges always post to the General Ledger with the type of cost you select for this option. This is also referred to as the market cost of the dirty or implied core charge.

Set the Product Warehouse Product Setup records for the implied core charge and dirty core product to the same value because they represent costs for the same product. It is also recommended that you do not set this field to a variable cost, such as average, because the variances in General Ledger do not clear.

An out-of-balance condition between General Ledger and Inventory Control can occur when:

• The option you specify is different than the option selected to post to the General Ledger, or
• You change the market cost on an item when there are dirty core products in inventory

If Vendor Core Charge on the Product Line Setup record is not selected, and you enter a remanufactured core product on a purchase order, the default value for associated implied core cost is zero.

The cost option you select for this setting determines which cost on the Product Warehouse Product Setup record is the default value during receiving for implied core costs when the vendor does not charge for cores.

If you select Last for this setting and the vendor is a foreign vendor, the Last Foreign Cost is displayed on the purchase order.

Select which cost to use for implied core charge and dirty core products on purchase orders when the Vendor Core Charge option in Product Line Setup is selected. If you select Last for this option and the vendor is a foreign vendor, the Last Foreign Cost is displayed on the purchase order.

When updates to inventory are distributed to General Ledger balance sheet accounts, you can distribute by product category, warehouse, or both. If your company is fully divisionalized, select Product Category. If your company is partial divisionalized, select Both.

The balance sheet is represented by the method you select and is displayed in Product GL Distribution Setup.

Sales can be distributed to the General Ledger income statement accounts by one of these methods:

• Product category
• Warehouse
• Customer type
• Sales Rep
• Product category/warehouse
• Product category/customer type
• Product category/sales rep

The income statement is represented by the method you select and is displayed in Product GL Distribution Setup.

This option is used during invoice processing to update commission costs. Regardless of the selection you make for this option, the product cost is the same cost that is posted to the General Ledger when the inventory is received. The cost that updates inventory after closing the receiving journal is also known as the receiving cost.

This table shows the values available for this option and the results of the selection.

This option is used during invoice processing to update Sales Manager costs. Regardless of the selection you make for this option, the product cost is the same cost that is posted to the General Ledger when the inventory is received. The cost that updates inventory after closing the receiving journal is also known as the receiving cost.

This table shows the choices available for this option and the results of the selection.

If you select Post Cost of Goods Adjustments in Costing, you can post the adjustments to the COGS or COGS Adjustment account. If you select COGS, the actual cost of the product is affected. If you select Cost of Goods Adjustment, you are writing off the difference between the actual product cost and the estimated cost. The accounts must be valid accounts in Product GL Distribution Setup or SA Operator Setup-G/L Accounts.

This option is used by Vendor Invoice Center Entry PO Costing for adjustments for goods that are sold before they go through the costing process.

When the purchase order is costed and an adjustment must be made, cost differences are posted to the nonstock inventory account. This balances the General Ledger and subsidiary reports if the nonstock or direct order record is still active. The nonstock or direct order record is created to close the set. This option is irrelevant.

If there is not an active nonstock or direct order header or line item record available, no nonstock or direct order record is created, and this option applies.

If you are updating your General Ledger using average, FIFO, or last cost, you can post cost adjustments from costing. If you are updating your General Ledger using standard or replacement cost, you cannot select this option.

If selected, and Use FIFO and Delete Layer When Empty are selected in the FIFO section, the layers are used to handle cost of goods rollback adjustments and are not deleted.

If you select this option and a FIFO receipt is depleted, it is immediately deleted from the layer.

These conditions apply for functions other than SA Data Archive Inventory FIFO Layers Report records and product deletions. When the Sales Manager and Post to GL by are FIFO, the layers from the purchase orders are deleted in the archive function when their associated purchased orders are closed.

By default, this field is not selected.

Select this option to use FIFO inventory valuation.

If this option was previously unselected, and you select it, running the Product Warehouse Inventory Audit Report with the Update Ser/Lot/FIFO IC Discrepancies option set to Yes reduces the On Hand balances on Product Warehouse Product Setup records to zero. Additionally, if Post to GL by is set to FIFO, you cannot balance your current inventory because the FIFO layers for On Hand balance were removed when the change was made. Custom coding must be obtained to create FIFO layers for your current inventory to correct this condition.

If this option is selected and Post to GL by is FIFO, these functions create and update FIFO records:

• Purchase Receipt of Inventory Entry
• Vendor Invoice Center Entry
• Transfer Receipt of Inventory Entry
• Sales Entry Processing Invoice Processing Report
• Transfer Shipping Entry
• Product Unavailable Inventory Entry
• Product Quantity Adjustments Entry

Product Extended FIFO Setup is the master file to build FIFO data. If the quantity received or returned is unavailable for any reason, the Available option in Product Extended FIFO Setup is cleared, and you cannot sell the product.