Loaded Costs: Company Master

Several fields under the Pricing/Costing tab in your Company Master can be adjusted to incorporate loaded costs into your pricing structure. This is especially important when it comes to calculating Gross Profit and Salesman Commissions.

You can also use the Pricing/Costing tab to define your C6 and C7 cost fields.

Calculate GP% from Cost Column (C1 to C7)

This field should be set to the Industry cost of the product (usually the C4 field), before the load percentage is added. You want to calculate your Gross Profit before you add the percentage because the extra "load" that you are adding isn't considered profit.

Choose the same cost column for the Inventory Adjustment Cost Column (C1 to C7) field as well.

Dflt Customer Last Price Paid in S/O (Y)es/(N)o

Using loaded costs means that your price for the product may have changed since the last time the customer purchased it. Entering an "N" in this field will prevent the Last Price Paid from automatically being used during Sales Order entry. You can then choose the correct, up-to-date, price from the Pricing Window.

Inventory Adjustment Cost Column (C1 to C7)

This field should match the cost column entered in the Calculate GP% from Cost Column (C1 to C7) field, so that you are using the same column to calculate the value of your inventory and your Gross Profit.

User Defined Label for Cost Column C6/C7

Designate one field to equal the Loaded Cost (usually the C6 field). You can use the other field to fill other pricing needs, such as a formula for the cost used to calculate Salesman Commissions.

Prompt to use Margin or Quoted Price in S/O Entry (Y)es/(N)o

Entering "Y" in this field will automatically prompt you to select the Margin or Quoted price for products entered in a Sales Order. You can also click on the Detail tab in the Pricing Window to view the formula used to calculate the price used in the Sales Order.

Salesman Commission Cost Column (C1 to C7)

Select the Cost Column that will be used to calculate the commission for each of your salesmen. You can choose to calculate commission from the Loaded Cost or from another cost column. For more information on how to set up Salesman Commissions, see the Salesman Commissions page.

If you do not want the loaded cost to be visible to your sales staff, you can use the Access Levels and User Master screens to require a higher access level to view these figures and formulas.

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