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The most important column on the Inventory Details window - Cost and Landed tab is the Standard prices. This is the price that you would normally expect to pay for the item when you reorder it. Normally, you just enter in the Cost field and be done with it.
Very important: If you enter in the value of the freight to this item, it increases its landed cost. When you sell the item on the invoice, the item is costed at the landed cost because that is what you have told the system the item is worth. Therefore, when you receive the freight bills for receiving the item, you must post those costs to Inventory as an Asset in the general ledger and do not post it as an expense.
If you post the freight as an expense and also included it in the value of the inventory item, the freight amount is costed twice and the inventory value in the general ledger ends up being too low.
Some tab functions work in relation to the window's Toolbar. Click Toolbar to view detailed information about the Toolbar button options.
If you purchase your goods in a foreign currency such as Canadian or US Dollars, then you can enter the currency code in the space provided just above the word Foreign and the amount in the field just to the right. The system calculates the actual cost value based on the exchange rate you have entered and place that in the cost field. As the currency rate changes, the cost price you can expect to pay changes too.
When you create a purchase order for a foreign supplier, you can have it print in their currency instead of your currency, making it easier to do business internationally. Note than when you bring items into stock, the system uses the current exchange rate and lock the value in for those items being received.
You can enter the various currencies and exchange rates in the Setup Wizard.
This is the cost you would normally expect to pay for the item. Note that when you receive goods on an Add Stock you can optionally tell the system to update the standard cost price to the new value you are paying. This helps keep the system up to date so that you'll know what to pay next time. Note that if you receive goods at a special price, such as a trade show special, then you should opt to not update the standard price as you receive the new goods.
If your supplier gives you diskettes, CD's or electronic files with their part numbers and new cost prices, you could use the System Five part load system to search and update the cost prices on all those items electronically instead of doing it manually item by item.
You can enter extra charges that you expect to pay to bring the item into your store. It works very much like the Freight and Duty charges below, but can be used for other things such as additional warranty charges.
If you pay extra money to land the goods on your doorstep, you can add that value here. It adds to the cost price, extra charges and duty to calculate the Landed Cost. The system removes the landed cost and expense it on the invoice when the item is sold. For this reason, if you enter the freight charge here, you must post the values to inventory instead of cost when you receive the freight bills from the trucking company.
Note: It's normally more work to try to keep track of the freight than it's worth. Most companies just expense the freight and do not include it in the value of the inventory. The exception would be companies that sell large goods such as furniture or appliances that have higher freight costs.
See Freight above. Same rules apply.
This is the calculated total of all the costs. You cannot change this number directly, but as you change the other numbers, this number changes.
For convenience the List Price is shown here, but you normally change it on the Retail window.
If you put the items on sale between dates, then the sale price is used. It is shown here for convenience only, but you can change it on the Retail window.
For the Extra charges, Freight and Duty you can enter a percentage to calculate those charges in dollars. This is normally just to make it easier to enter the values in the first place as the dollar values stay when the cost prices change instead of fluctuating.
For freight, this is handy because you may be paying a fixed fee per unit or by weight instead of as a percentage of value.
If you check this box, the system keeps the percentage markup for Extra charges, Freight and Duty so as the cost price changes, so does the value. This is especially handy for Duty charges which are normally a percentage of the value.
When unchecked, the system keeps a varied percentage setting for which would need you to input a cost price.
Because the system sells the items on a first in, first out basis, the average cost of the items on hand may not equal the standard cost or the next cost. And as items are sold and the oldest items are removed, the average cost changes even though you may not have purchased replacement items.
Note: This is the case on the printed inventory reports also. Those reports show the quantity in stock at the average price paid. If you sell some items or adjust the quantities in stock and then reprint the report, the values change based on what is left in stock. This is normal and expected and is the best way to manage your inventory. (In most cases.)
This is the cost prices of the oldest items in stock that are to be sold next. If the retail price is a percentage markup of the next price, then the retail price shown in this column are used on the next invoice.
See also: Inventory Details