Cost Factors (PO13)

The Cost Factors folder in Maintain Purchasing Info (PO13) defines the additional costs that are used in determining the Replacement and Landed Costs for the Product entered in the Header section. For more information on Replacement and Landed Cost Calculations, click here.

You can define Landing Factors for the Supplier in Maintain Supplier Master (PO11). If defined in PO11, these Landing Factors automatically populate the Cost Factors folder when new Purchasing Information records are created.

Note: In Enterprise versions 5.1 and higher, Products can have multiple GTINs assigned (see PO13/Packing Information for additional details). The Cost Factors assigned to the Product only affect the GTIN set for 'Default Costing'.

The following list defines every field on the Cost Factors folder:

1. In the Primary Shipping Method section:
   • Factor - enter or select from the query a Landing Factor code. Landing Factors are defined in Maintain Purchasing Tables (PO09/Landing Factors). Landing Factors are add on costs that can be applied at the Supplier/Product level, in Receive In-transit to Stock (PO63) and in Enter Recipts/In-Transits (PO60) for the purpose of accurately reflecting the true Purchasing Cost of a Product.

     Landing Factors can be assigned at the Product level in PO13 to reflect predictable add on expenses from this Supplier for this Product. For example, if the Supplier charges a specific freight or packaging rate for this Product, assigning a Landing Factor in PO13 with that rate results in a more accurate Replacement cost and Landed cost when receipts from that Supplier are processed.

   • $Rate/Pct - in the Rate/Percent field, enter the Rate or Percent you wish to assign.
     • Note: If the Landing Factor is set up in PO09 with a Calculation Method of 'Value's %', the entry made here is a Percent. For all other Calculation Methods (Cube's Rate, Weight's Rate and Unit's Amt), enter a $Rate in this field.

     • For Calculation Methods Cube and Weight, this Rate is applied to the Cube/Weight measurement entered in PO13/Pack Information. Both Metric and US Cube and Weight measurements are stored, but the Rate is applied to the US or Metric measurement based on the Supplier's default Measuring Units assigned in PO11.

   • Currency - the Currency automatically displays once the Factor is entered. This field is for display purposes only and is defined in PO09/Landing Factors.

   • Method - the Calculation Method automatically displays once the Factor is entered. This field is for display purposes only and is defined in PO09/Landing Factors. The following are valid options:
     • V (Value %) - Landing Cost is calculated as a percent of selected 'Base' value.

     • W (Weight's Rate) - Landing Cost is calculated as a dollar value per SKU Weight (pound/kilo). The Landed Cost is impacted ONLY when a Weight is entered for the Master Carton (Actual) in Enterprise 5.0 or when a Weight is entered on the detail line of the GTIN flagged as 'Default Costing' in Enterprise 5.1 and higher.

     • C (Cube's Rate) - Landing Cost is calculated as a dollar value per SKU Volume (cubic foot/meter). The Landed Cost is impacted ONLY when a Volume is entered for the Master Carton (Actual) in Enterprise 5.0 or when a Volume is entered on the detail line of the GTIN flagged as 'Default Costing' in Enterprise 5.1 and higher.

     • U (Unit's Amount) - Landing Cost is calculated as a dollar value per unit purchased. The Landed Cost is impacted ONLY when Quantities are entered in the 'From Purchasing Unit' and 'To Stock Keep Unit' in the Conversion Factor section on the Purchasing folder.

     For more information on the Calculation Methods, see the Replacement and Landed Cost Calculations document.

   • Base - the Cost Base automatically displays once the Factor is entered. This field is for display purposes only and is defined in PO09/Landing Factors. The following are valid options:
     • 1 - Domestic NET unit Purchase Price.
     • 2 - Value for Duty - this value is used to calculate the Duty amount. It is the Net Purchase Price plus any Landing Costs that are flagged 'Dutiable'.
     • 3 - Duty Paid Value - this is the sum of 'Value for Duty' plus the Duty amount.

   • Dutiable - the Dutiable check box automatically defaults to the setting in PO09/Landing Factors. This field is for display purposes only. The following are valid options:
     • N - Duty is not charged on this Landing Cost.
     • Y - Duty is charged on this Landing Cost.

   • In FOB - the In FOB check box automatically defaults to the setting in PO09/Landing Factors. This field is for display purposes only. Only Landing Factors with this check box selected are included in the calculated FOB cost.

2. The Shipping Method 2 section is used for comparison only:
   • This section provides a workspace where you can enter alternate Landing Factors and determine the effect on the Landed Cost for comparison purposes only. This is helpful for making buying decisions and setting the Selling Price.

   • The fields are the same as the fields in the Primary Shipping section.

3. In the sections below the Primary Shipping Method and Shipping Method 2:
   • First Cost - is calculated as follows:

     (Purchase Price (for the first quantity) - Discount) x Exchange Rate

     This is the same for both the Primary and Secondary shipping methods.

   • FOB Cost - is the cost for Freight On Board. This includes items such as packaging and shrink-wrap. FOB cost is calculated as:

     [(Purchase Price - Discount) x Exchange Rate] + Landing Factors flagged as "Include in FOB Cost"

     Note: Landing Factors details can be found in Landing Factors .

   • Landed Cost - is calculated as follows:

     [(Purchase Price - Discount) x Exchange Rate] + Duty + Excise Tax + Landing Factors

     Note: Duty and Excise details can be found in Duty Rates.

^{PO13/Cost Factors Folder}