Table of Contents LANDED COST MODULE LANDED COST MODULE... 1

Transcription

1 LANDED COST MODULE Table of Contents LANDED COST MODULE... 1 LCPF-...LANDED COST PROGRAM FLOW... 3 OVRM-...OVERHEAD MATERIAL CODE MAINTENANCE... 4 CTRLE-...CONTROL E MAINTENANCE... 6 XLCM-...LANDED COST MAINTENANCE... 7 XPORLC-...LANDED COST UPDATE...21 LCTUTOR-...LANDED COST TUTORIAL...27

2 Proprietary Notice This manual contains information w hich is proprietary to Munics Information Systems, Inc. and all rights are reserved. No part of this manual or its contents may be used or reproduced by any means w ithout the express w ritten permission of Munics Information Systems, Inc. Disclaimer of Warranty The material contained herein is subject to change w ithout notice. Munics Information Systems, Inc. makes no w arranty, express, implied or by description, regarding the information set forth herein. Munics Information Systems, Inc. does not guarantee, w arrant or make any representation regarding the use of, or the results of the use of, the programs in terms of correctness, accuracy, reliability, currency or otherw ise, and the purchaser relies on the programs and the results solely at his/her ow n risk. NEXT GENERATION is a registered trademark of Munics Information Systems, Inc. Copyright Munics Information Systems, Inc. Release 6.30 LC- 2

3 LCPF- LANDED COST PROGRAM FLOW Getting the Application Ready for Operation Introduction For those companies that import merchandise, accurately tracking all of the associated costs can be a major project. In addition to the cost of the merchandise (factory cost), you can have duty, customs, ocean freight, inland freight, insurance, brokers fees, commissions and other miscellaneous fees. The module will assist a user in the tracking and management of these costs. There are tw o elements to. The first entails building and maintaining standard landed cost. The second is to calculate the actual landed cost at the time of receiving and updating the inventory cost fields (average and last) representing the factory cost (material), duty (overhead), freight and other charges (labor), and buyer' s commission (outside). The process begins by first determining and setting up those items that are going to be tracked as landed cost items. In order for the system to calculate landed costs, certain fields in the Item Master (IM) record must be maintained. The XLCM (landed cost maintenance) program was designed to bring the fields from the item master record that may be used in landed cost calculations on a single screen. Note, any field changed in the XLCM program will w rite the changes to the corresponding field in the IM file. The user must set up overhead codes to track the different landed cost factors (i.e. duty, ocean freight, etc.). These overhead codes are then entered into the XLCM program. Once the set up is completed, the user may then enter purchase orders for these items. Or, you may enter purchase order requisitions and turn them into purchase orders, depending on how you are using the purchasing system. Purchase orders (or requisitions) for the landed cost items are entered the same w ay that regular (non-landed cost) items are entered. In the purchase order module, the system does not differentiate between landed and non-landed cost items. The only restriction is that landed cost items cannot be on the same purchase order as non-landed cost items. They must be kept on separate purchase orders. After a purchase order has been issued to the vendor and the merchandise begins to arrive, the user may then begin the receiving process using the standard receiving program. As the items are received, the landed cost program runs in conjunction with the purchase order receipts program. The user must enter a purchase order receipt first (POR). Once the receipt is entered, the user would then access the landed cost program (XPORLC), through the Control E or RUN button, and input the necessary cost factors. Two updates are then completed the first to the purchase order receipt (POR), the second to the landed cost (XPORLC). The process is then complete. The following documents will outline the setup procedures to calculate landed cost, a procedural manual on how to run landed cost and an explanation of how the cost factors are calculated. Release 6.30 LC- 3

4 OVRM- OVERHEAD MATERIAL CODE MAINTENANCE Introduction The overhead material code maintenance program is used to setup the calculations for the different cost factors of landed cost. The applicable codes are then entered into the XLCM program in fields 07, 08 and 09. From the menu enter ' OVRM' : Enter the following fields: OVERHEAD CODE OVERHEAD DESC. Enter the Overhead Code associated with this cost factor. Field length is 2 characters. Enter the Overhead Description associated with this cost factor. Field length is 15 characters. Note: If the overhead code being entered is for a freight calculation, the first part of the description must be the container capacity (either weight or volume. If entering something additional on the description there must be a space after the capacity amount. OVERHEAD RATE Enter the rate associated with this cost factor. If code is for Duty calculation, this entry will be a percentage multiplier. An entry of 0.05 w ill signify 5%. If code is for Freight calculation, this entry will be the container freight rate. An entry of would signify a rate of $657 to ship this container. Release 6.30 LC- 4

5 CALC. METHOD Ent er " 1" if freight is calculated by Weight. Ent er " 2" if freight is calculated by Volume. Release 6.30 LC- 5

6 CTRLE- CONTROL E MAINTENANCE Introduction The CTRLE program is used to set up Ctrl-E capability when a user must go from the POR program to the XPORLC program. The following record needs to be added the CTRLE-program: From the menu enter ' CTRLE', then select (A)dd: The following fields must be entered with value shown: PROGRAM NAME CALLING PROGRAM NAME SENDING FIELD 1 SENDING FIELD 2 ALL OTHER FIELDS Ent er ' xporlc' as the program name value. Ent er ' por' as the calling program name value. Ent er ' ctrlnum_porctl' as the sending field 1 value. Ent er ' L' as the sending field 2 value. All other fields are to be left blank. Release 6.30 LC- 6

7 XLCM- LANDED COST MAINTENANCE Introduction The purpose of the XLCM program is to record the overhead codes used to calculate landed cost. Fields used for the standard_cost_update menu option are also maintained in this program. The fields displayed in this program are actually fields from the Item Master program. If a user updates any of the fields in this program, they will be updated in the IM program. Conversely, if a user updates fields in the IM program, they will be updated in the XLCM program. The following is a display of the fields available in the XLCM program and the corresponding database field identifier. Database Fields From the menu, enter ' XLCM' Release 6.30 LC- 7

8 PROCEDURE The user may select records for update by using the standard search functions on the system. Once the item is displayed on the screen, the following fields may be maintained in an update mode. From the menu, enter ' XLCM' : Once the item is displayed on the screen, the following fields may be maintained in an update mode: MATL (Factory) Enter the standard factory cost associated with this item. LABOR (O&I Frt & Acf) Enter the standard ocean/inland freight + access/other charges associated w ith this item. The std_cost_update option will allow the user to recalculate the standard labor cost based on the container capacity and the incremental material cost. OVHD (Duty) Enter the standard duty cost associated with this item. The std_cost_update option will allow the user to recalculate the standard overhead cost based on the container capacity and the incremental material cost. OUTSD (Buyer Comm) Enter the standard buyer' s commission amount associated w ith this item. The std_cost_update option will allow the user to recalculate the standard outside cost based on the buyer' s commission percentage (cstmemo1) rate. Release 6.30 LC- 8

9 COST EXPIRATION DATE Enter the cost expiration date associated with this item. This field is used in the std_cost_update option. PRICE EXPIRATION DATE Enter the list price expiration date associated w ith this item. This field is used in the std_cost_update option. OVRHD CODE 1 (Duty) OVRHD CODE 2 (O&I Frt) OVRHD CODE 3 (Other) Enter the overhead code used for the calculation of duty for this item. Enter the overhead code used for the calculation of ocean/inland freight for this item. Enter the overhead code used to calculate other charges for this item. The overhead cost field is also used to store the buyer' s commission amount for the item. BUY COMM Enter the buyer' s commission rate for this item. The std_cost_update option will use this field to recalculate the standard outside cost. WEIGHT Enter the unit weight for this item. The xporlc program will use this field if freight is to be calculated on total weight. VOLUME INC. MATL Enter the unit volume for this item. Enter the per container freight cost for this item. The std_cost_update option will use this field to recalculate the standard labor cost. LIST VENDOR ID PROD GRP ISAC 1 ISAC 2 ISAC 3 ISAC 4 Enter the list price for this item. Enter the vendor ID used to purchase this item for this item. Enter the product group for this item. Enter the item sales analysis category 1 code for this item. Enter the item sales analysis category 2 code for this item. Enter the item sales analysis category 3 code for this item. Enter the item sales analysis category 4 code for this item. Release 6.30 LC- 9

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11 Std_Cost_Update The standard cost update option is used to maintain a Standard landed cost for an item. This is not a required function the user must complete. The option will allow the user to calculate a standard landed cost based on values input in the buyer' s commission (Buy Comm % / Field 10), incremental material (Inc Matl / Field 13) and overhead code 1 (Ovrhd Code 1 (Duty) / Field 07). The standard landed cost is used by the system on the XPORLC/ View report. By maintaining a standard landed cost, a user will have the ability to see the Standard landed cost vs. the Actual landed cost. If a user opts to maintain standard landed cost values, this option should be run periodically for all items. From the ' XLCM' program select (S)td_Cost_Update option. Select an item to be updated. Note: User may run this option for a single item (enter full item id), a group of items (using the standard search functions on the system to select items or select based on isac code) or all items (depress the < Tab> key at the Item ID field). There are several print/update options available: Release 6.30 LC- 11

12 Report Options: Option 1 Print Standard Cost and List Price This option w ill print a report of the existing standard cost and list price for an item. When option 1 is selected, system w ill bypass the update options prompt and go directly to the Print Second Line (Y/N) prompt. User may select to output report to (S)creen, (P)rinter, (H)old File. The following is a sample report output with a second line printed: Release 6.30 LC- 12

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14 The following is a sample report output without a second line printed: Option 2 Print Standard Cost Calculate List Price from Standard Cost This option w ill print a report of the existing standard cost and w ill recalculate the list price from the standard cost using the value in the multiplier field. An entry of 1.50 in the multiplier field w ill calculate a list price that is 150% of the standard cost. For example, if an item has a standard cost of $50.00 and a multiplier of 1.50, the calculated list price w ill be $ User may choose to either run a report w ithout update by selecting update option 1 or w ith update by selecting update option 2. Note: This option w ill only update list price. Either option may be printed w ith or w ithout a second line. In this option user may select items w ith specific price expiration dates or cost expiration dates by inputting a date into the appropriate field. This w ould omit items that do not have the entered expiration date. User may select to output report to (S)creen, (P)rinter, (H)old File. Release 6.30 LC- 14

15 The following is a sample report output with a second line printed: Release 6.30 LC- 15

16 The following is a sample report output without a second line printed: Option 3 Recalculate Standard Cost, Calculate List Price from New (Recalculated) Cost This option w ill recalculate all standard landed cost factors (if applicable) for an item and w ill recalculate the list price from total recalculated standard cost using the value in the multiplier field. An entry of 1.50 in the multiplier field w ill calculate a list price that is 150% of the standard cost. For example, if an item has a total standard cost of $55.00 and a multiplier of 1.50, the calculated list price w ill be $ User may choose to either calculate w ithout update by selecting update option 1 or calculate and update by selecting update option 2. User may select to update (S)tandard Cost, (L)ist Price or (B)oth. Eit her selection w ill print a report w ith or w ithout a second line. In this option user may select items w ith specific price expiration dates or cost expiration dates by inputting a date into the appropriate field. This w ould omit items that do not have the entered expiration date. User may select to output report to (S)creen, (P)rinter, (H)old File Release 6.30 LC- 16

17 The following is a sample report output with a second line printed: Release 6.30 LC- 17

18 The following is a sample report output without a second line printed: The following screen prints will show an item' s standard landed cost before and after performing the recalculation of cost and list price from new cost (Option 3), assuming a multiplied of Release 6.30 LC- 18

19 Before Calculation: After Calculation: The system will calculate the standard landed cost factors as follows: Labor (O & I Frt & ACF) (Unit weight/volume divided by the description in overhead code 2 which is the container capacity) (freight adjustments) Release 6.30 LC- 19

20 Freight adjustments are calculated as follow s: (Unit weight/volume divided by description) x (incremental material cost) Overhead (Duty) (Standard material minus freight adjustment) x rate Freight adjustments are calculated as follow s: (Unit weight/volume divided by description) x (incremental material cost) Outside (Buy Comm) (Standard material times cstmemo1) / 100 Release 6.30 LC- 20

21 XPORLC- LANDED COST UPDATE Introduction Once a purchase order receipt record has been entered in POR, the user may access the XPORLC program to input the landed cost factors for this receipt. A user will actually access the xporlc program tw ice from POR. The first time w ill be prior to printing the POR control [option (L)anded cost]. The second time will be after updating t he POR control [option (I)nventory cost]. Ent er ' XPORLC' : Release 6.30 LC- 21

22 Select option (L)anded cost: The following fields are used to select a purchase order receipt control to enter landed cost factors for: RECEIVER CONTROL NUMBER RECEIVER DATE RECEIVER STATUS Enter the purchase order receipt control number. Enter the purchase order receipt control date. Enter the purchase order receipt status. Release 6.30 LC- 22

23 Once you have selected the control you wish to enter landed cost factors for, the following screen w ill be displayed: Enter information in all applicable fields: OCEAN & INLAND FREIGHT Enter the total amount of the ocean & inland freight for this control. If the material cost includes ocean freight, this field w ill contain the inland freight amount only. PRE-PAID OCEAN FREIGHT Enter the total amount of pre-paid ocean freight for this control. If the material cost includes ocean freight, this would be the sum of the ocean freight portion for the control. ACCESS & OTHER CHARGES BUYER COMMISSION % CALCULATE DUTY CALCULATION OPTION Enter the total amount of access and other charges for this control. Enter they buyer commission rate for this control. An entry of 2.00 would signify a 2% buyer' s commission. Ent er ' Y' to have the system calculate duty on this control. Ent er ' N' if you do not wish the system to calculate duty on this control. Enter the freight calculation method: Release 6.30 LC- 23

24 1. Program w ill test if w eight > 50%. If w eight is > 50%, system w ill use w eight calculation. If w eight is < 50%, system w ill use volume calculation. 2. Weight 3. Volume The following are the calculations that are made by the system for landed cost: FREIGHT LANDED COST CALCULATION Sum up total weight or volume for the control. Calculate the % of w eight for the receiver line. The system w ill then calculate the item freight landed cost amount as follows: Sum (other/access charges + ocean/inland freight) x (% of weight/volume for line) = total freight cost for line. (total freight cost for line) / (total units received on line) = freight landed cost amount per item. This result is then placed in the receiver memo1 field (rcrmemo1_porctld). BUYER COMMISSION LANDED COST CALCULATION DUTY LANDED COST CALCULATION (PO material unit cost) x (buyer commission % entered). This result is then placed in the receiver memo3 field (rcrmemo3_porctld). Sum (PO material unit cost prepaid freight unit cost) x (duty % f rom OVRM) = duty landed cost amount per item. This result is then placed in the receiver memo2 field (rcrmemo2_porctld). The system calculates prepaid freight as follow s: Calculate the % of cost for the receiver line. (Receiver line % of cost) x (total prepaid ocean freight) = total prepaid ocean freight cost for line. (total prepaid freight cost for line) / (total units received on line) = prepaid freight cost amount per item. You may wish to print a report of the calculated landed costs: Release 6.30 LC- 24

25 Select Option (V)iew : The following fields may be entered for a report selection: CONTROL NUMBER RECEIVER CONTROL DATE STATUS Enter the purchase order receipt (POR) control number you w ish to print a report for. Enter the purchase order receipt receiver number you w ish to print a report for. This w ill print a report of just that receiver, not all receivers on a specific control. Enter the purchase order receipt control date you w ish to print a report for. This w ould allow a user to print a report w ith multiple controls, if they w ere done on the same day. Ent er ' U' to print a report of all updated purchase order receipt (POR) controls. Both landed cost controls as w ell as non landed cost controls w ill print. The following is a sample report output: Wed Nov Development Database Page 1 11:50:41 LANDED COST REPORT CONTROL # RECEIVER DATE RCVR MEMO1 RCVR MEMO2 RCVR MEMO3 STATUS CALC METHOD PACK LIST /23/ N W ITEM ID DESCRIPTION QTY RECEIVED UM TO STK QTY UM VENDOR ITEM ID VARIANCE % < UNIT LANDED COST > < UNIT STANDARD LANDED COST > FACTORY COST FRT/OTHER DUTY BUY.COMM TOTAL FACTORY COST FRT/OTHER DUTY BUY.COMM TOTAL TESTLC LANDED COST ITEM 300 EA 300 EA TOTAL PROD GROUP EXTENDED COST RECEIVER EXTENDED COST CONTROL # REPORT TOTAL Release 6.30 LC- 25

26 To move the by item landed cost to the item master/item branch programs, the user must run the Inventory Cost function. Select Option (I)nventory Cost: The following fields may be entered to select a purchase order receipt control to be updated: RECEIVER CONTROL NUMBER Enter the purchase order receipt control number you w ish update inventory costs for. RECEIVER DATE RECEIVER STATUS Enter the purchase order receipt control date you w ish to update inventory costs for. This option may be used if you w ish to process multiple controls. Ent er ' U' to process all updated purchase order receipt controls. Release 6.30 LC- 26

27 LCTUTOR- LANDED COST TUTORIAL Introduction The following is a basic landed cost receipt procedure. Please be aware that your company may need additional fields entered. This should be used as a generic guide only. Step 1. Make sure the item is set up for landed cost. Note: This step does not need to be done if you are sure all items have appropriate overhead codes. From the menu enter ' XLCM' to check landed cost factors: Step 2. Begin the purchase order receipt by entering a POR control header and receiver detail. Release 6.30 LC- 27

28 From the menu enter ' POR' to go to the Purchase Order Receipts program. Add a control header: Enter the detail receiving information: Release 6.30 LC- 28

29 Exit to the ' Process POR Control' w indow. Select (P)rint option: Step 3. From the XPORLC program enter the landed cost factors. Enter the landed cost information that pertains to this receiver: Once you have accepted these factors (by entering through all prompted fields, system will accept values entered), the system w ill calculate the " by item" landed cost values & put them in the follow ing fields: rcrmemo1_porctld, rcrmemo2_porctld & rcrmemo3_porctld. Step 4. The system will bring you back to the POR program. Release 6.30 LC- 29

30 Print and Update the Purchase Order Receipt Control then exit to menu. Release 6.30 LC- 30

31 Select (P)rint and required print option (' H' or ' P' ). Once control is printed, select (U)pdate. Step 5. Complete the landed cost update from the XPORLC/Inventory cost option. From the ' XPORLC' program, select (I)nventory cost option. Enter the receiver control number and < Tab> : Release 6.30 LC- 31

32 The receiver w ill display as shown. From the Options prompt select (A)ccept. This w ill update the landed cost. Step 6. If required, print a view of the XPORLC report for the processed control. From the ' XPORLC' program, select (V)iew option. Enter the receiver control number and < Tab>. Select desired print option: Release 6.30 LC- 32