Sale - Costs

LOGISTICS -> Sales -> Costs tab

Be sure to read the Life-cycle of a sale to get an overview of the sale process.

Costs may be added in three ways:

  1. Select a SETUP -> Cost template. This enables a live connection between the selected template and this sale. Changes to the template will automatically update the costs on this sale. You can optionally override any cost and thereby break the live connection.
  2. SETUP -> Shipping rates will be automatically be applied based on the Shipping agent, Load port and Discharge port.
  3. Manually add cost lines.
Tip

See SETUP -> Cost templates for more discussion about costs, charges, and actual costs.

Adding a cost

  • Description - Describe the cost.
  • Cost type - Controls how this cost will be handled in financial calculations. Options include:
    • Commission - while still reducing the sale return, this cost is a source of your income and contributes to your margin;
    • FOB cost - the cost will be deducted prior to calculating FOB return (eg shipping);
    • Standard cost - a normal cost that reduces the sale's post-FOB return;
  • GL Account - Select the general ledger account for this cost when posting through to financials.
  • Rate - The rate to allow for this cost.
  • Currency - Currency this cost is charged in.
  • Per - The UOM the cost is calculated by multiplying the Rate by the units selected here. Options include:
    • Kgs, TCEs, Units - as described;
    • Container - cost per shipping container (eg temperature recorders);
    • Sale - cost per sale (eg documentation);
    • % FOB - allows for the cost to be a percentage of the sale's FOB return in local currency (NZD);
    • % Income - allows for the cost to be a percentage of the sale's return from the customer (often considered to be CIF) in local currency (NZD).
  • Split cost by - Once the total amount of the cost has been determined (rate * per unit) then that costs needs to be apportioned across all of the products on the sale using the unit selected here. Most common choice is Kgs (assuming you have accurate product weights set up).
  • Applies to (filters) - filters the product on the sale this cost will apply to. This provides a very powerful way to target costs at the appropriate product.
Note

Leaving an "Applies to" filter blank means that no filtering will occur on that attribute. For example if you leave the Brand filter blank then any brand will match.