Overview
The Purchase Item Cost record is created by the software. The record contains fields containing current values and historical values. The record is updated from Purchase Order Receipt and Purchase Order Receipt Reversal transactions. The fields updated by the purchase order receipt transactions are: the purchased item quantity received, the total value of the receipts of the item, the average price being paid for an item and the date of the last transaction. The Purchase Item Cost contains a function to move the values in the current data fields to the historical data fields and to zero the current fields, reinitalizing them. The Purchase Item Cost record has a field, the Std Material Cost field, that is a software calculated or manually entered purchased cost for the item. This Std Material Cost value can the source for the cost in the Inventory Item Standard Cost - Simulated Purchase Price, which is the material cost used used in the Simulated Cost Rollup.
Application
In an average cost division current and historical values can be used as information to manage purchased item costs trends. In a Standard Cost Division current and historical values can also be used for information to manage purchased item costs trends . Additionally, in a Standard Cost Division the Std Material Cost value can be the source of material cost for the Inventory Item Standard Cost - Simulated Purchae Price field which is used in a Simulated Cost Rollup.
Process - Calculation of Current Average Values by the software
As Purchase Order Line items are received the software recalculates a new Current Qty Received, a new Current Amount Received and a new Current Avg Cost and sets the Last Current Update date.
NOTE See the Purchase Order Receipt and Purchase Order Receipt Reversal Transactions
Navigation
Purchase Item Cost
Processing
Select Edit to edit a record
or
Select Name to view a record
Fields
Division: Division in which the PO Item Cost record resides
Item: Item number for which cost are being presented
Standard Cost Ind: The setting determines if the field is updated manually by the user or is calculated by the software.
Selections are:
Manual: Entered by the user
Calculate: Calculated by the software.
NOTE This Standard Cost Inc. defaults from the Purchase Order Commodity Code and can be overridden on an individual item.
Std Material Cost: The manually entered or calculated cost of the purchased item.
When Standard Cost Ind is set to Manual, the user enteres the value.
When the Standard Cost Ind is set to Calculate the software calculates the value. It is calculated when the user selects: Derive Purchase Mtl Costs from PO Activity function.
NOTE Weighting Factor and Std Markup/Down values in the Purchase Order Commodity Code record are used in the calculation
Cumulative Cost Data tab
Fields
Current Qty Received: Total number of this item from the receipt transaction. This field is updated in the PO Receipt(and PO Receipt Reversals program.
Current Amount Received: Total amount value of this item from the receipt transaction. This field is updated in the PO Receipt and PO Receipt Reversals program.
Current Avg Cost: Currnet Amount Received/Currenty Qty Received. This field is updated in the PO Receipt and PO Receipt Reversals program.
Last Current Update: This field is updated by the PO Receipt and PO Receipt Reversals program.
Historical Qty Received: The value of the Currenty Qty Received at the last Current > Historical update
Historical Amount Received: The value of the Currenty Amount Received at the last Currentv> Historical update
Historical Avg Cost: The value of the Currenty Avg Cost at the last Currentv> Historical update
Last Historical Update: The date of the last Currentv> Historical update
Processing – Move Current Values to Historical Values
This function is used when it is appropriate to reset and Current values to zero to initiate new Current calculations. For example, in a standard cost division, after setting new standard costs, averages calculation should be anew.
Select record the Edit button
Select Current > Historical button
SEE ALSO
Purchase Order Overview
Inventory Item Standard Costs
Cost Rollup Steps and Review of Calculations
Purchase Order Commodity Code
Purchase Order Receipts
Purchase Order Receipt Reversals
Unit of Measure Master
UOM Conversion Factors
Derive Purchase Mtl Costs from PO Activity
