Entering an Item - Costs Card
- Cost Price
- Used as default in
Quotations, Orders, Invoices, Purchase Items
- The Cost Price of the Item should be recorded here, in the home Currency. Since the figure will be used in calculating the Gross Profit of Sales Orders, it is important that it be determined by the same Unit and Price Factor values as the Base Price on the 'Pricing' card. It is also used as a default when creating Purchase Items and can be used to set the Purchase Price when using the 'Create Purchase Orders' Maintenance function in the Sales Orders module. Depending on the setting of the Update Cost Price at Purchase options (see below), the figure can be updated automatically when included on Goods Receipts.
- Cost Price Change
- This field shows the date of the last change to the Cost Price for the Item and is updated automatically.
- Extra Cost
- Enter here any extra costs involved in the purchase of this Item, such as fixed freight costs. The figure will be included in the cost when calculating Gross Profit.
- Weighted Average
- This figure records the average unit cost price of this Item in the home Currency (including extra costs such as freight and customs duties). It is updated automatically from Goods Receipts whatever the setting of the Update Cost Price at Purchase options (see below). The field can also be recalculated using the 'Update Item Cost Price' Maintenance function in the Stock module.
- Last Pur. Cost
- This figure records the last unit cost price (including extra costs such as freight and customs duties) used when purchasing this Item. It is updated automatically from approved Goods Receipts whatever the setting of the Update Cost Price at Purchase options (see below).
- Last Pur. Price
- This field is similar to the one above, but in this case the figure does not include any extra costs such as freight and customs duties.
- Last Pur. Currency
- This field records the last Currency used when purchasing this Item. It is updated automatically.
- Upd. Cost Price at Purchase
- Hansa can update the Cost Price of an Item automatically. If this feature is operating, the update will occur whenever a Goods Receipt is approved, not when a Purchase Order is raised. If the Item is one that is constructed from components, the update will occur whenever a Production record is marked as Finished.
- The automatic updating of Cost Prices can be useful if you are using cost accounting (maintaining stock values in the Nominal Ledger) and your goods-out values are based on Items' Cost Prices. In this scenario, it is advantageous if the Cost Prices are always kept up-to-date. Cost Accounting is fully described here.
- Note that changes to the Cost Price made here will not directly affect future Purchase Orders until the change is transferred to the equivalent Purchase Item (see the page describing the 'Update Purchase Items' function in the 'Purchase Orders' module for full details).
- These options are used to control this feature:
- No
- Select this option if this feature is not to be used for this Item.
- Last Purch Cost Price
- If this option is chosen, the Cost Price is changed to the Cost Price of the Items on the last Stock Receipt (i.e. the price including extra costs such as carriage and customs duties). This option will be used for Items whose prices do not often change, or where the long-term pattern is for prices to fall or rise.
- Weighted Average
- This option changes the Cost Price to the average unit Cost Price of all previous Goods Receipts and Returned Goods. This option will be useful where prices fluctuate without a pattern, perhaps due to changing exchange rates.
- Where the Item has been used in Stock Movements and Returned Goods, any Extra Cost in those transactions will be taken into account when changing the Cost Price.
- When entering a new Item, the option selected as a default will be that chosen in the Item Settings setting in the Sales Ledger.
