Costing Control Settings

• System Administration > System Settings > Merchandising and Distribution System Settings > Costing Control Settings

(LOCKED - STORIS access ONLY!) Use this field to indicate the costing method you want the system to use for all completed sales and inventory activity (excluding receiving) posted to the General Ledger.  You have the following options:

• Average - use the average cost of products.

• Exact - use the exact (actual) cost of products.

Select the costing method you want to use when calculating and reporting sales commissions. You have the following options:

• Replacement

• Average

• Exact

Specify the costing method you want to use for inventory that is returned to the vendor. You have the following options:

• Replacement

• Exact

Use this mandatory field to enter the percentage you want to add to the cost calculated for sales commissions; to apply no commission add-on percentage, enter zero (0) or leave blank (null). Sales commissions are calculated by using the costing method selected at the Salesperson Commissions field on this tab plus any additional percentage you enter here, causing an increase to the cost and a lower gross margin for sales commission reporting only.

This add on percentage is also used to calculate the cost and gross margin percentage in the Costed Line Item Display and the Sales Margin Scratchpad, both accessed from the Actions button on the Merchandise page of Enter a Sales Order. Note that it is not used in the Gross Margin Calculator.

  Commission add-on percentages by product via the Add to Cost % field on the Pricing page of Advanced Product Settings are applied before this global setting.

If you check the box at the Use Monthly Table field, you activate this field, into which you must enter your depreciation rate for repossessed items.  

The affect of this setting is limited to the General Ledger postings associated with the completion of a repossession return as it pertains to the Re-possession Cost Loss account and the Cost of Sales account.

This field is active only if Revolving Receivables is active on your system. Use this field to specify your depreciation method for repossessed returns.  You can use either landed or material cost The cost of the raw materials that go into a product. The material cost of a product excludes any indirect costs, for example overheads or wages, associated with producing the item..  Completed repossession returns post to the Repossession Sales and Cost of Sales accounts on the Sales tab in the General Ledger Assigned Account Settings.

Specify the vendor to use when calculating received landed costs. You have the following options:

• Product Vendor

• Purchase Order Vendor

If you set this field to Purchase Order Vendor, the system prevents you from setting the Landed Cost Distribution field to "General Ledger Only", and vice versa.  

This is a STORIS-LOCKED field. To edit this field, contact your STORIS representative.

Enter the method by which to calculate landed costs. You have the following options:

• General Ledger Only - use the general ledger setting (that is, avg/replacement).

• Allocate Upon Receipt - use exact costs at the time of receipt.

 If you use the Convert Data routine and one or more products on the spreadsheet contains freight or add-on costs that differ from the costs in their respective product records, to update the field you must have this field set to Allocate Upon Receipt. Otherwise, the costs do not update.

This is a STORIS-LOCKED field. To STORIS personnel: If you change from General Ledger Only to Allocate Upon Receipt, a prompt appears asking if you want to run the update utility. If you run the utility, the system identifies all products for which add-on costs have been specified and recalculates the Costing Table to include the add-on costs. If you choose not to run the utility, the field reverts to General Ledger Only.

If you set this field to General Ledger Only, the system prevents you from setting the Calculate Receiving Landed Cost field to "Purchase Order Vendor", and vice versa.   

Enter a label for the add-on cost (for example, Duty or Broker's Fees).  The label you specify here appears whenever the add-on cost appears in the system.

STORIS provides four add-on costs you can use in your system to track landed costs.   

Click the Arrow button and select the type of add-on cost.

• Choose External if the add-on cost is calculated at initial receiving time and is not affected by processes occurring after the initial receipt. The calculated amount is posted to general ledger as the landed asset and liability for that add-on.

• Choose Upcharge if the add-on is "internal" and is affected by processes that occur within the application. This type of add-on does not generate general ledger postings during initial receiving and the add-on amount in the costing layers is initially empty. Currently the only available internal add-on is a *transfer upcharge.

*Transfer Upcharge If you use this type of add-on, then when inventory is transferred from a distribution center to a location in a different company, the following is true.

The material cost of the transferred inventory, excluding all freight and add-ons, is multiplied by the up-charge percent specified in the company record for the shipping location. The resulting value is assigned to the reserved add-on for those inventory layers. In addition, the appropriate multi-company general ledger postings are completed.

Inter-company transfers of inventory not involving a distribution center do not result in any changes in cost at the inventory level, but do generate multi-company general ledger batches, moving the value of the inventory and the add-on from the company of the transfer from store to the company of the receiving store.

If the inventory is transferred back to a distribution center, the add-on is removed entirely from the inventory layer and the appropriate general ledger postings made to reverse postings from the original transfer out of the distribution center.

To calculate repossession depreciation as a prorated value based on total retail value and total remaining Revolving balance due for the customer, check the box.  To use material cost, leave the box blank.

This field is active only if Revolving Receivables is active on your system. Use this field to specify your depreciation method for repossessed returns.  You can use either landed or material cost The cost of the raw materials that go into a product. The material cost of a product excludes any indirect costs, for example overheads or wages, associated with producing the item..  Completed repossession returns post to the Repossession Sales and Cost of Sales accounts on the Sales tab in the General Ledger Assigned Account Settings.

To calculate repossession depreciation based on a monthly depreciation table, check the box.  Otherwise, leave the box blank.

If you check the box at this field, you activate the Depreciate Repossessions Percent field above, into which you must enter your depreciation rate for repossessed items.

This field is active only if Revolving Receivables is active on your system. Use this field to specify your depreciation method for repossessed returns.  You can use either landed or material cost The cost of the raw materials that go into a product. The material cost of a product excludes any indirect costs, for example overheads or wages, associated with producing the item..  Completed repossession returns post to the Repossession Sales and Cost of Sales accounts on the Sales tab in the General Ledger Assigned Account Settings.

Check this box to always adjust stocked inventory at the average cost.  Otherwise, leave the box blank.

Check this setting to post the freight cost from a Return to Vendor against the Landed Freight Liability, Landed Add-On 1 Liability, Landed Add-On Liability 2, Landed Add-On Liability 3, and Landed Add-On Liability 4 accounts.

Uncheck this setting to post the freight cost from Return to Vendor against the Inventory Adjustment GL account.

 These accounts are defined in the General Ledger Assigned Account Settings.

When this setting is checked, the difference between the material cost of a product and the recoverable amount specified when the Return to Vendor is created is posted at the time the Return to Vendor process is completed, in advance of the AP bill creation. This difference is posted as part of the completion batch using the RTV Valuation Difference account identified in the Inventory tab of General Ledger Assigned Account Settings.

Uncheck this setting to post the difference between the material cost of a product and the recoverable amount specified when the Return to Vendor is created at the time the AP bill is created.

 The AP bill creation process does not check this setting because it is possible for this setting to be changed at any time; AP bill creation is the last opportunity to post any difference that was not posted during Complete Return-To-Vendor. Posting decisions are instead based on whether or not a difference between the recoverable amount specified in Return to Vendor and the material cost has already been posted.

To activate the Landed Freight feature and thus include freight amounts in landed costs, check the box.  Otherwise, leave the box blank.

To activate the corresponding add-on cost (landed add-on cost 1 above) for use in the system, check this box. Otherwise, leave the field blank.  

STORIS provides four add-on costs you can use in your system to track landed costs.

To activate the corresponding add-on cost (landed add-on cost 2 above) for use in the system, check this box. Otherwise, leave the field blank.  

STORIS provides four add-on costs you can use in your system to track landed costs.

To activate the corresponding add-on cost (landed add-on cost 3 above) for use in the system, check this box. Otherwise, leave the field blank.  

STORIS provides four add-on costs you can use in your system to track landed costs.

To activate the corresponding add-on cost (landed add-on cost 4 above) for use in the system, check this box. Otherwise, leave the field blank.  

STORIS provides four add-on costs you can use in your system to track landed costs.

If you established a global reduction percentage (above) or a reduction percentage by product group, you can check the box at this field to indicate that landed and freight costs should be reduced on returns. If you leave the box blank, only inventory costs are reduced.

If you select this option, the system generates a purge report of solved costing exceptions.

To use the Report Reconciliation of Inventory to GL Values (Inventory-GL Reconciliation Report) to reconcile your general ledger transactions to your inventory transactions, check the box.  Otherwise, leave the field blank.

If you check the box at this field, the system collects the data needed for the report.  If not, the report does not include meaningful information for reconciliation.

To include the Report Inventory Reconciliation (Inventory-GL Reconciliation Report) in the Generate Daily Reports process, check the box at this field. If you leave this field blank, you can still run the report on demand.

Use this field with the Receive a Purchase Order and Receive a Purchase Order with a Separate Freight Bill routines to indicate whether to calculate special-order products in the same way as stock products, or skip them.

• Add-On Calculation Process

 

Select your inventory AP approval method. You have the following options:

• Create Exception - create cost exceptions for any cost differences between the receiving cost and the AP Approval cost.  Note that these exceptions require operator review and manual update.

• Auto-adjust - the system looks for all the costing layers for the product that match the PO line item or Receiving Reference of the cost exception. If the total quantity of the matching layers is the same as the cost exception quantity, the system automatically adjusts the cost of all the matching layers. If the quantities do not match (partial AP Approval), the system does not adjust the cost. The system leaves the cost exception open and you must adjust it manually.