Updated May 20, 2022
The system allows the user to purchase a material using one costing method (e.g. “Drums, Rolls”) and to inventory the same material using a different costing method (e.g. Pounds, MSI, Linear Feet).
To do this, click the PO Info button in either the Inventory Module or File Maintenance/Materials and the system will display the Purchasing Information for: … screen.
Purchasing Unit Description : Enter text that will describe a PO Unit that will print on a purchase order under Unit Description.
Purchasing Costing Method : Choose either Per Each or Per M. This will be used to determine the cost of the purchased material based on Costing Method x Purchased Quantity.
Purchasing Factor : This value will be used to calculate how much (either each or per M) the purchasing unit will contain which in turn, will be put into inventory and/or used for estimating.
Divide By : In all the above calculations the user may choose to divide the Purchasing Factor into the Estimating Unit Cost Quantity.
The user purchases ink in 50 gal drums that contain 90lbs of ink. The user would like to inventory (and estimate) the ink in pounds.
Therefore, the user would set the Costing Method for the ink as Per Each (for lbs) than set in the PO Info button set the following;
Purchasing Unit Description = 50 Gallon Drum
Purchasing Costing Method = Per Each
Purchasing Factor = 90 (for 90 lbs)
In this example, if the user purchases and receives 2 drums of ink, the system would increase the inventory by 180 pounds (i.e. 2 drum x 90lbs) and estimate based on the number of punds of ink required.
Other examples;
Coil bind wire singles - 11" Strips
Costing Method = Per Each
Purchasing Unit Description = Box of 100
Purchasing Costing Method = Per Each
Purchasing Factor = 100 (for 100 per box)
In this example, if the user purchases and receives 3 boxes of wire, the system would increase the inventory by 300 singles (i.e. 3 boxes x 100/box) and estimate using singles required.
Coil bind wire in 30 foot rolls
Costing Method = Per Linear Inch
Purchasing Unit Description = 30' rolls
Purchasing Costing Method = Per Each
Purchasing Factor = 360 (for 360 inches)
Divide by : Checked
In this example, if the user purchases and receives 8 rolls of wire, the system would increase the inventory by 2880 linear inches (i.e. 8 rolls x 360/roll) and estimate using based on the linear inch required.
Once the PO Information values have been assign the user can than add the PO Unit Cost to the Estimating Unt Costs grid under the PO Unit Cost field.