ITrack/Enterprise/Costing
Costing
"Costing" is a feature that was added when the Interchange Branch was created; costing can happen for both parts and vehicles.
Costing in ITrack Enterprise is done in four different ways:
- Vehicles have a cost associated with them. It includes any costs used to purchase the vehicle, as well as work done on it.
- Parts that come from a vehicle don't have a cost assigned until time of sale, at which point they consume up to the part's full price of cost, dependent on cost remaining on the vehicle.
- Replenishable parts have their cost assigned at the time they are purchased, and each subsequent purchase updates their cost.
- Parts that don't belong to a vehicle and are entered manually take a percentage of their price as cost based on an internal default setting.
Vehicles
- Any work order that has a vehicle as its Master Part will have its total price attributed to the cost of the vehicle. In other words: When it is on a work order, cost is 100% of the vehicle.
| Tip |
| A Master Part is the part being modified with labor OR having parts consumed toward it.
Examples:
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- When the unit is sold, the entire cost of the vehicle is attributed to the part.
Vehicle costs are calculated by elements from the Purchase Order Screen (adjustments and purchases) and the Work Order Screen (price after taxes/labor/etc).
Parts
- Parts that are tied to a vehicle have zero cost until they are sold and finalized.
- If the part has an Average Cost that is not zero, Enterprise interprets this as a static cost, meaning that the cost has already been decided and will not change or be re-chosen automatically.
- When a part is sold, cost is taken from a percentage of the part's price at the time of sale. The percentage is determined from the item's 'GLCategoryID' and 'percentofprice' column in the 'GLCategory' table.
| Tip |
GLCategory has its percentage based from 0 to 1.
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- Parts not tied to a vehicle and are NOT replenishable are given a cost based on an internal default setting for ITrack that can be changed as part of percentage of cost.
- Parts not tied to a vehicle and ARE replenishable will have their "Average Cost Increased" based on their purchase price and quantity. "Average Cost Reduced" will be based on price at the time of sale on Sales Orders.
- Core items (both dirty and inherent) do not have a cost. This is because any item that contains a core will have a cost, and any cost that a core has should be attributed to that item instead.
Average Cost Increased/Decreased
Average Cost Increased/Decreased is a little bit of a complicated concept. First, let's say we have a replenishable item called Screws. At first we have zero screws, but we purchase 10 Screws for $1 each. The average cost is now $1 ($10 divided by 10 Screws). Now let's say we buy another 10 Screws for $2 each. The average cost has now increased from $1 to $1.5 ($30 divided by 20 Screws). This increase in the average cost is known as Average Cost Increased.
Average Cost Reduced works the same way, only it is a decrease instead of an increase.
Additional Questions
If you have any additional questions, please contact Justin or Dillon, or search the Enterprise Wiki for costing. We'll be glad to help!
