In entrée version 3.4.10 we revised all of the cost calculation features in entrée  to enforce the rule that Base Cost is equal to Real Cost plus Freight plus Markup.

Modification # 915 is the old "free form" method which will produce exceptions to this rule for those customers that have it.

 

The base cost represents the final cost of the item including all overhead factors. Many distributors use the base cost to calculate their selling prices as well as to pay salesperson commissions.

 

•If the item is sold by weight, the base unit cost must represent the cost per pound.

 

•The base cost can be used to calculate the value of the inventory using the Inventory On Hand report.

 

•The base cost can also be used to determine gross profit on many reports.

 

•If the cost of an item changes, users will be prompted to update the item cost after receiving inventory by item or by purchase order. When performing the cost updates, the item cost can be updated using the new base cost or an average cost can be calculated.

 

Locking the Base Cost

If a Cost Markup is defined the base cost will become locked.

 

•When the base cost is locked, it cannot be edited.

 

•When the base cost is locked, entrée automatically maintains the value using the formula

Real Cost + Freight Rate + Cost Markup

 

•Whenever the real cost, freight rate, or cost mark-up changes, entrée automatically updates the locked base cost.

 

•To unlock the base cost, remove the cost markup for the item.