Purpose: Use this option to update the cost of all items in the SKU table with the item's landed cost. The system uses the price defined for the primary vendor plus any additional vendor/item charges to determine the landed cost. For example, if the vendor item price is 10.00 and an additional charge exists for 2.00, the landed cost equals 12.00.
The system updates the standard cost for items only if they have a primary vendor from the Item table a vendor item associated with that primary vendor.
You can also update the cost of all eligible items with the landed cost through the Update Standard Cost (program name POR0461) periodic function. See Working with Periodic Functions (WPER) for more information on periodic functions and processes.
Note: The Costing Method (A25) system control value must be set to STANDARD in order to update the standard cost of all items. An error message indicates if you update the standard cost and the costing method is not standard: Costing Method must be Standard.
Interactive update: You can update the standard cost of selected items through the Work with Vendor Item Screen, available through the Work with Item/SKUs (fast path = MITM) and the Work with Vendor Items (fast path = WVNI) menu options.
In this chapter:
• Update Standard Cost Screen (Submitting the Batch Program)
• Standard Cost Updates Report
Update Standard Cost Screen (Submitting the Batch Program)
Purpose: Use this screen to submit the Calculate Standard Cost Batch program. This program updates the standard cost of all items defined with a primary vendor and vendor item with the landed cost.
How to display this screen: Enter MSCC in the Fast path field at the top of any menu or select Update Standard Cost from a menu.
1. Select Submit to submit the Update Standard Cost batch program.
2. The system displays a message: Job (UP_STDCOST) has been submitted to batch.
3. The following message indicates if the Costing Method (A25) system control value is not set to STANDARD: Costing Method must be Standard.
The system:
• updates the Cost field, visible on the Change SKU (Base Information) screen, with the landed cost for all items defined with a primary vendor and vendor item
• produces the Standard Cost Updates Report
The calculation for landed cost is:
vendor item price + total vendor item additional charges = landed cost
Example:
vendor item price = 10.00
freight charge = 1.00
duty charge = 7%
10.00 + [1.00 + (10.00 x (7/100))]
10.00 + [1.00 + (10.00 x .07)]
10.00 + (1.00 + .70)
10.00 + 1.70 = 11.70
Important: The vendor item additional charges are used to calculate landed cost only if the additional charge type is not D (duty). See Working With PO Additional Charges (WPAC).
