Part / Inventory Costing

GLOBAL PART COST/RESALE ATTRIBUTES

Default Part Cost

The cost displayed here represents the Cetec ERP pricing engine logic driven default cost for the part. Cetec ERP attempts to auto-assign a default unit cost for the part using the following hierarchy of rules:

  • First, Cetec will look for any vendor cost defined for the part, either from a pricing import of a vendor catalogue or from part cost/qty breaks manually defined. (See below for how to maintain vendor costing & MSRP data.)

  • If no vendor costing data is found, Cetec will default to the cost at which the part was last purchased (i.e. last buy cost) - if the “cost_use_last_buy_cost” configuration variable is turned on (this setting is turned ON by default.)

  • Next, Cetec will look for the average cost of the part if it already exists in your inventory records. This will be the average cost of your default warehouse assigned in configuration settings.

  • If no average cost value is found, Cetec will look at sales history. If the part has been sold before, Cetec will take the last invoiced cost of the part, and use that.

  • Finally, if and when Cetec finds a cost for your part based on the above rules, it will then attempt to apply any Pricing Rules that have been assigned to the part. Note that this means Pricing Rules have the “final say” on the cost of a part, if pricing rules exist for the part.

Default Part Resale

The resale value displayed here represents the Cetec ERP pricing engine logic driven default resale for the part. Cetec ERP attempts to auto-assign a default unit resale for the part using the following hierarchy of rules:

  • First, Cetec will look for any resale (i.e. MSRP) defined for the part, either from a pricing import of a vendor catalogue or from part resale/qty breaks manually defined. (See below for how to maintain vendor costing & MSRP data.)

  • Then, if and when Cetec finds a resale break / MSRP above, it will attempt to apply any Pricing Rules that have been assigned to the part. Note that this means Pricing Rules have the “final say” on the resale value of a part, if pricing rules exist for the part.

  • Last Buy Cost - to display a “last buy cost”, first, the system will search across any open POs to determine at what cost the part was most recently purchased (note that Internal, Build To Stock POs are ignored until they are received); then the system will move on to closed POs to determine last receipt cost, i.e. the cost at which the part was last received. The value Cetec locates, if any, will be displayed here as Last Buy Cost. If no value is found, the cost will display as $0.00.

INVENTORY COSTING

Cetec ERP supports multiple warehouse locations; therefore, we let you maintain different inventory cost values depending on which warehouse you are in. Each cost method below is defined per warehouse location.

  • Average Cost - this is the average inventory cost for the part based on all receipts of stock to inventory. Mathematically, average cost is defined as follows:

  • Average Cost = [ Bin1 (receipt cost x qty) + Bin2 + Bin3 + … + BinN ] / [ Total QOH (Quantity on Hand) ]

  • Cost For Loc (Adjusted Cost) - this represents the average cost for a part that is then modified/adjusted by any Pricing Rules that exist for the part.

  • Resale For Loc (Adjusted Resale) - this represents any resale Pricing Rules that may exist for the part. (This value is only populated if if and only if Pricing Rules have a value defined for it, i.e. any pricing rule that is solely an integer, not a +integer or -integer or %integer.

  • Bin Level Unit Cost (Bin Cost) - Bin cost represents the unit cost defined on the receipt for the part that was put away into the particular bin when the part was received and put away into stock. This is the receipt level cost.

VENDOR COSTING & MSRP

Import Vendor Pricing & Part MSRP

To perform a mass import of part cost/qty and part resale/qty breaks (i.e. vendor costing and MSRP), navigate to PARTS » Pricing Maintenance » Pricing Import. Then, from the Import Pricing screen, select a .csv (spreadsheet) file format of the pricing catalogue you wish to import. After the import, Cetec will provide you with a data scrubber to further format the data to ensure a successful import of part pricing.

Maintain Cost/Qty & Resale/Qty Breaks

To manually maintain part pricing (i.e. part cost/qty or part resale/qty breaks) in the system, navigate to the parts screen via PARTS » List » (select a part), and click the Pricing tab in the left side bar. Here, you can Add Records to add quantity breaks for both cost and resale, and define part pricing for exact quantity breaks. Default part cost and resale values will take the minimum quantity breaks defined here.

PRICING LEVELS & PRICE RULES

Pricing rules are applied to parts as the “final say” to cost/resale default values. In other words, if and when a default cost or resale values if found for a part (based on the hierarchy of rules Cetec employs to locate a default cost/resale), pricing rules will then be applied on top of and perhaps in place of whatever default cost/resale value preceded it. To configure pricing rules, navigate to PARTS » Pricing Maintenance » Pricing Rules, and be sure to adhere to the following guidelines:

Define a pricing rule

Create a new pricing rule by selecting the Add Pricing button. Assign a pricing rule name and type, and select a certain customer or customer identifier you would like the pricing rule to apply to. Selecting a customer identifier will apply the pricing rule to any customer with that business type.

Apply the pricing rule

Additional filters and qualifications may be applied and modified in-line per pricing rule after it has been created, including: run order, prcpart, cost rule, resale rule, and valid dates.

Run order

You can create any number of pricing rules, which must stack on top of each other. In other words, every subsequent pricing rule will modify the result of the prior rule. Application is by Run Order, with the lowest Run Order rules applying first.

Prcpart / Valid Dates

Relatively self-explanatory. Pricing rule will only apply to the respective part number and on the particular date range defined in these fields.

Cost Rule / Resale Rule

These values represent the actual dollar amounts applied (i.e. added, subtracted, or substituted) when all the other filters have been met, and therefore directly affect your margin. Pay attention! Formatting these values correctly is important!

First, note that there are only two valid types of input here: dollar amount or percentage amount.

Second, note that these amounts may be either set, added, or subtracted. Use the following list of valid cost/resale rule inputs and their respective price applications for reference:

  • Input of 10 will set cost/resale at $10. Formula: [ cost = rule value ]
  • Input of 10% will add 10% to existing cost/resale value. Formula: [ cost = cost / ( 1 - ( rule value / 100)) ]
  • Input of -10% will subtract 10% to existing cost/resale value. Formula: [ cost = cost * ( 1 - ( rule value / 100)) ]
  • Input of +10 will add $10 to existing cost/resale value. Formula: [ cost = cost + rule value ]
  • Input of -10 will subtract $10 from existing cost/resale value. Formula: [ cost = cost - rule value ]

DEFAULT QUOTE LINE COST

Upon selection of a part on a quote line, Cetec ERP will attempt to auto-assign a default unit cost for the part using the following hierarchy of rules:

  • First, Cetec ERP will look for any vendor cost defined for the part, either from a pricing import of a vendor catalogue or from part cost/qty breaks manually defined. (See below for how to maintain vendor costing & MSRP data.)
  • If no vendor costing data is found, Cetec will default to the cost at which the part was last purchased (i.e. last buy cost) - if and only if your company has explicitly requested that the “cost_use_last_buy_cost” configuration variable be turned on. This configuration option is not turned on by default.
  • Next, Cetec ERP will look for the average cost of the part if it already exists in your warehouse.
  • If no average cost value is found, Cetec will look at sales history. If the part has been sold before, Cetec will take the last invoiced cost of the part, and use that.
  • Finally, if and when Cetec finds a cost for your part based on the above rules, it will then attempt to apply any Pricing Rules that have been assigned to the part. Note that this means Pricing Rules have the “final say” on the cost of a part, if pricing rules exist for the part.

Important! If the quote line is for a work order (i.e. transaction code of Build), and you define BOM cost and BOM resale for the job in the BOM worksheet, those work order specific cost/resale values will override any default part cost/resale values on your quote line.

DEFAULT QUOTE LINE RESALE

Upon selection of a part on a quote line, Cetec ERP will attempt to auto-assign a default unit resale for the part using the following hierarchy of rules:

  • First, Cetec ERP will look for any MSRP (i.e. vendor suggested resale) defined for the part, either from a pricing import of a vendor catalogue or from part resale/qty breaks manually defined. (See below for how to maintain vendor resale (MSRP) data.)
  • Then, if and when Cetec ERP finds an MSRP (i.e. resale price break), it will attempt to apply any Pricing Rules that have been assigned to the part. Note that this means Pricing Rules have the “final say” on the resale of a part, if pricing rules exist for the part.

Important! If the quote line is for a work order (i.e. transaction code of Build), and you define BOM cost or BOM resale for the job in the BOM worksheet, those work order specific cost/resale values will override any default part cost/resale values on your quote line.

DEFAULT PQUOTE LINE COST

Upon adding a part to a pQuote line, Cetec ERP will attempt to auto-assign a default unit cost for the part using the following hierarchy of rules:

  • First, Cetec ERP will look for any vendor cost defined for the part, either from a pricing import of a vendor catalogue or from part cost/qty breaks manually defined. (See below for how to maintain vendor costing & MSRP data.)

  • If no vendor costing data is found, Cetec ERP will default to the cost at which the part was last purchased (i.e. last buy cost).

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