FAQ: How do the cost and price fields in the Product Master work?

Some of the cost fields in the Product Master are system-updated fields that will automatically change when transactions are posted. Other cost and price fields can be set to update based off of these fields using Price Rollup formulas. For more information regarding Price Rollup formulas, see the Price Rollup Schedule page.

If you are maintaining your costs and/or prices by warehouse, there will be a Warehouse field directly above your cost fields. The costs and prices displayed will reflect transactions for this warehouse only.

User maintained cost or price fields can be updated through an imported spreadsheet, using the Price Change screen, Product Mass Change or by setting it to update based on another cost or price field. All price and cost fields will display the date that they were last updated to the right of the field.

Descriptions for the cost and price fields can be changed in the Company Master, under the Pricing/Costing tab. User defined labels can be applied to any field except the C2 Average, C3 Landed and C5 Last P/O fields.

C1 Cost - User maintained cost field. This cost field typically contains your "Standard" or "Stock" cost for the item.

C2 Cost - Weighted Average Cost. Looks at the cost of your inventory currently in stock and the new cost of the item being received to calculate a weighted inventory average cost for the product. If the new cost of the item is the same as the current average cost, this cost will not update. This cost will automatically recalculate when a product is received, and again when the A/P Invoice is entered.

C3 Cost - Landed Cost. By default, this is set to be your average cost, plus freight cost amortized by volume or dollars. There are a few fields in the Company Master that can be adjusted for this cost:

•Update Landed Cost in P/O Receipts w/o A/P Invoice (Y)es/(N)o - controls if the system will update the C3 cost before the A/P Invoice is entered and linked to the receiving. If this is set to N, the cost will only update when the A/P Invoice is entered. If this is set to Y, the cost will update when the receiving is entered with freight. If there is no freight on the receiving, the cost will not update.

•Update Landed Cost as weighted (A)verage or (L)ast - controls if the freight cost is added to the C2 Average Cost of the item or the C5 Last P/O Cost

•Allocate Landed Cost by (D)ollars/(V)olume - controls if the freight is distributed across the products on the receiving by the volume of the item or the cost of the item. If you choose Volume, please be sure that you have volumes entered for your products in the Product Master, under the General tab.

C4 Cost - User maintained cost field. This cost field is typically used to calculate a "Loaded" or "Salesman" cost for the item.

C5 Cost - Last P/O Cost. The cost of the product on your most recent purchase order, with the date of the purchase order receiving to the right. This cost field is automatically updated by the system when the receiving for the item is entered. The Vendors tab of the Product Master will display more information regarding the last P/O for the product.

C6 Cost - User maintained cost field.