Overview

In CALIQ you can opt to have your costs updated either at Goods Receipt or when the invoice is approved via Invoice Approval. 


This is the main screen is system desk where you will find the majority of the settings affecting cost updates:


These options in resource desk may also have an impact:


Update Costs at Goods Receipt

  • New costs are only calculated if stock is received in from a purchase order or a consignment.
  • If stock is received against a customer return or supplier return, the costs used are the applicable current costs from the stock file.
  • New Unit Cost - The supplier cost on the purchase order line is converted to a Main Base Currency (MBC) unit cost as follows:
    • The supplier cost is converted to a stocked unit cost by applying the supplier conversion factor if present. 
    • If the purchase order currency is not MBC the cost is then converted to MBC using today's exchange rate unless the purchase order has a specific exchange rate specified, in which case that one is used instead.
  • New Average Cost - 
    • If the current Average Cost is not zero a new one is calculated as ( (Physical Stock * Old Average Cost) + (Qty Received * New Unit Cost) ) / (Physical Stock + Qty Received).
    • If the current Average Cost is zero, the new one is set to the new Unit Cost.
  • New Last Cost - Set to new Unit Cost.
  • New Landed Cost - 
    • If the option From Landed Cost on Consignment is selected and the goods is received from a consignment, the Landed Cost is picked up as the one calculated by consignment management.
    • If the option From Landed Cost on Consignment is selected and the goods is not received from a consignment, the Landed Cost is set to the new Unit Cost.
    • If the option Landed Cost from Uplift on Supplier is selected, the Landed Cost is calculated as the new Unit Cost + supplier uplift.
    • If none of the above, i.e. Option Not Used, it is set to the old Landed Cost.
  • New Average Landed Cost - 
    • If the current Average Landed Cost is not zero a new one is calculated as ( (Physical Stock * Old Average Landed Cost) + (Qty Received * New Landed Cost) ) / (Physical Stock + Qty Received). 
    • If the current Average Landed Cost is zero, the new one is set to the New Landed Cost.
  • New Standard Cost -
    • This is only updated if the standard cost update rule, found in resources general settings, is set to "Update from Shipping Consignment at Goods Receipt" and allow manual override per resource is not set or it is set and the resource rule concurs.
    • If the goods is received from a consignment and the Landed Cost is not zero, the New Standard Cost is set to the landed cost as calculated in consignment management.
    • In any other case, it is set to the old standard cost.
  • Costs are only updated if: 
    • You receive stock in from a purchase order or a consignment.
    • Some has been accepted, i.e.  not fully scrapped.
    • The unit price on the purchase order line is not zero.
    • The item is not a Bill of Material.
    • The item is a Bill of Material but it has been marked as excluded from BOM costing.
  • Update of Costs when normally updated at Invoice Approval:
    • If the valuation cost or the cost used for margin calculation is zero and the physical stock is zero, the valuation cost will be set to the MBC value calculated from the purchase order unit cost. 
    • If the Last Cost is zero and the physical stock is zero, the last cost is set to the MBC value calculated from the purchase order unit cost.


Update Cost at Invoice Approval

A few more system desk options come into play here, to do with additional charges.



Landed Cost Calculations in Invoice Approval

This is an example screen from Invoice Approval, invoice acceptance:    

The additional charges are included if set to 'Include in Landed Cost Calculations' (2, 3, 4) . This cost is apportioned to the items being received according to the rule set for the charge - by value, volume or weight.


If the demand desk option "Landed Cost Uplift in Invoice Approval?" is set, there are additional ways more landed cost values can be entered during invoice approval:

  • Button "Other LC Uplift" (1) - This displays a pop-up window that lets you enter additional charges against commodity codes as well as up to three additional user definable charges headings. These charges are not part of the invoice value, they are entered purely to allow the calculation of the Landed Cost. For this reason they are always entered in Main Base Currency. The cost is apportioned to the items being received according to the rule set against the charges - by value, volume or weight. The total cost entered is displayed in the edit field to the right of the button.

  • Fixed Amount (5) - Enter an optional fixed amount. This amount is entered in the invoice currency and will be apportioned according to value.

  • Uplift Percentage (6) - Enter an optional uplift percentage. The additional amount is calculated as (Matched Value + all the Additional Charges set to 'Include in Landed Cost Calculations') * Uplift Percentage. This amount will be apportioned according to value.

The two options 5 and 6 above are mutually exclusive. The additional landed cost uplift value entered or calculated is displayed to the right (7).


When the invoice is accepted, the additional costs from the invoice to be include in the landed cost calculation are picked up as described above. These additional costs are then applied to each line and item, apportioned according to value, volume or weight, as specified. 


Commodity code charges entered via the Other LC Uplift button are done separately, since those charges will be applied according to the commodity code for each item.


Together with the cost of each product, this produces a Landed Cost figure for each item received.


So, the following costs are updated here in Invoice Approval as follows:

  • Physical Stock - This is approximated as Current Physical Stock - Quantity Invoiced. If this is less than zero, it is set o zero.
  • Last Cost - The invoice unit cost, converted to MBC if required.
  • Average Cost - Set to ( (Physical Stock * Old Average Cost) + (Qty Invoiced * Last Cost) ) / (Physical Stock + Qty Invoiced). 
  • Landed Cost - Updated as per calculations described earlier.
  • Average Landed Cost - Set to  ( (Physical Stock * Old Average Landed Cost) + (Qty Invoiced  * Landed Cost) ) / (Physical Stock + Qty Invoiced ) 


Please Note: The cost is only calculated and updated if the unit price entered for the invoice is greater than zero.


Update of Cost when normally updated at Goods Receipt:

  • The Landed Cost and Average Landed Cost are updated unless set to update the landed cost from consignment management or via a supplier uplift percentage at goods receipt.
  • The Last Cost is updated if the system flag has been ticked.

Update of Cost on FIFO batches

  • The FIFO batches created at goods receipt will have their costs updated here, now that the landed cost has been properly calculated and the actual cost of the item has been confirmed. The costs updated are SD Cost, SD Landed Cost, MBC Cost and MBC Landed Cost. 


The exception is that if costs are updated at goods receipt and the landed cost is updated from consignment management or calculated as an uplift on the supplier price, the landed costs are not updated on the FIFO batch.