Part Costing

The Part Costing screen can be accessed from the Parts Profile screen by clicking on the Cost field.

The Part Costing screen displays the landed cost prices for specific part order types in a table, based on the Cost Code Order Creation screen, which is used to apply a factor to the current cost of a part in order to arrive at a landed cost. Parts are then received into inventory at the landed cost figure, which in turn affects their Average CostClosed The average cost is automatically updated whenever parts are receipted in the system (either through inventory adjustments or parts orders). When a part is returned, the system uses the Average cost to return that part to Inventory. To calculate Average Cost, assume a part is added to the system with a cost of $10.00 and 2 parts are receipted. The average cost is $10.00 for each of these 2 parts. Now assume the cost increases to $12.00 later in the year and 1 additional part is receipted after that cost has increased. The new average cost is calculated as follows: (Old Avg Cost x Old on Hand) + (New Cost x Number of Parts Receipted at New Cost) / Old on Hand + Number of Parts Receipted OR (10.00 x 2) + (12.00 x 1) / (2 + 1) = $10.66.

The following is a description of the fields that appear on the Part Costing screen:

Field Description
Order Type

The type of order used when the parts purchase order is created.

Note:  
Parts order types can include, for example: SO-stock order; Q1-quarterly order, 1st quarter; Q2-quarterly order, 2nd quarter; Q3-quarterly order, 3rd quarter; Q4-quarterly order, 4th quarter; TS-special order program; ST-special order program; MD-machine down; FI-fill in; T$ Z$ other special order programs; and IA-updated using the Inventory Adjustment screen.
Landed CostClosed The Landed Cost of a part is the final cost of the part on an order after all applicable Order Creation and Order Update cost code factors have been applied to the Current Cost of the part. Cost factors are applied when the part is ordered and receipted into the system based on the order Type (eg. SO: Stock Order, MD: Machine Down, FI: Fill In, etc.) The Landed Cost of a part will, in turn, be factored into the Average Cost of a part (as specified in the Average Cost field of the Parts Profile tab.) For details regarding cost code logic, please see the Cost Code Logic topic in the FAQs and Troubleshooting section of the online help. For details regarding the Average Cost of a part, please see the Average Cost definition in the Glossary section of the online help.

The landed cost is determined by the type of order used when the parts purchase order is created.

Note:  Note: If a part has its main vendor listed as an Alternate Supplier then the cost in the Alternate Supplier record will be used in place of the net cost.

The following button allows you to complete your work on the Parts Costing screen:

Button Function
Close Closes the Part Costing screen and returns to the Parts Profile screen.