If the CLA-COPR (Classification costing/pricing) function is activated together with the CLA-ITEM (Item classification) function in the Function control file, it is possible to define purchase and sales prices on the item classification definition (higher level) and download these prices to the item level. During the Standard net purchase price (SPP) download routine, Standard cost (SC) and Standard cost sales (SCS) of the item are calculated based on the purchase price for todays period and saved on the item level or item/warehouse level. The first supplier from the item/supplier ranking list (main supplier) is used when cost prices are calculated if Cost per warehouse is not used. If costs are defined to be stored on the warehouse level, cost prices for the active warehouses are calculated and updated. In this case the supplier defined for the warehouse is used. This calculation is done via the Update costs from purchase price black box program.
The download of the costing can be triggered from the item level or from the higher level of the item classification when changes regarding supplier or purchase price information are done. The cost update can also be done through a mass update to be started either manually or via daily batch run routines.
During the download/cost update, landed costs for the item are calculated. In this calculation the Main cost warehouse of the item is used to retrieve landed cost value if Cost per warehouse is set to NO. If no Main cost warehouse is defined for the item, the Main warehouse from the DIS control file is used.
The latest cost prices can be updated during the daily batch run. This is because cost prices are not updated per period as purchase prices are and the costs must be based on todays SPP. For example:
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Purchase prices on the item level: |
Costs on the item level: |
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|---|---|---|---|---|
| From date | To date | Price | Standard cost | Standard cost sales |
| 01/10/12 | 31/10/12 | 80 | 88 | 92 |
| 01/11/12 | 30/11/12 | 90 | – | – |
| 01/12/12 | – | 100 | – | – |
When a date is 1/11/12 purchase price 90 is active but costs used are based on the purchase price from the previous period. When costs are updated on a daily basis the user can be sure that costs are based on the active purchase price.