Estimating Unit Cost
Updated May 1, 2024
Applies to : Inventory Items and Finished Good Items
When entering a Sheet, Roll, Ink material or Standard Items and also Finished Good Items, the user will need to create an Estimating Unit Cost Grid with as many grid tiers as required.
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NOTE In a Finished Good Item the Grid is referred to as the Unit Sell Prices instead of Estimated Unit Cost but has the same functionality. |
In order for any cost to be calculated by the system the user will need at least 1 quantity break. The first quantity break in the Estimating Unit Cost grid will always be set to 1.
Initially, the system will allow the user to enter a quantity other than 1, however, if the first cost break is not 1, then the system will change the entered value to 1 when the user clicks OK to exit the screen.
Click Add to create an Estimating Unit Cost and the system will display the Material Unit Cost screen.
Material Unit Cost
Quantity : Use this field to define a cost grid that will be used for a specific material. It is recommended that the user start the grid with quantity = 1.
Unit Cost : Enter a value that will be used in Estimates and Orders.
Flat Cost : This value will be added to any calculated cost.
Contract Unit Cost : Use this value if the PO Unit Cost does not exist for a Purchase Order.
PO Unit Cost : This value will be used when an Inventory Item is required for a Purchase Order.
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NOTE : Unit Cost, Contract Cost and PO Unit Cost work by determining which values exist. For example when creating a Purchase Order the value will be determined as follows;
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When using the PO Unit Cost or the Contract Unit Cost the Purchase Order value may also be determined by the PO Info factor. Click here for discussion regarding PO Info Button.
IMPORTANT
The user should realize that inventory values and estimating unit cost may not coincide.
Regardless of the values in the Contract Unit Cost or the PO Unit Cost, the system will always use the Unit Cost value to calculate the Cost for Estimates and Orders.