Include PO Estimated Charges in Receipt Cost Calculation (G29)

Purpose: Use this screen to define whether the system includes purchase order estimated additional charges in the receipt cost of an item when a purchase order is received, fully or partially.

Yes/No field: Select this field if you want the system to include purchase order estimated additional charges in the receipt cost of an item when a purchase order is received, fully or partially.

Costing method: In order to include estimated charges in the receipt cost of an item, you can not use standard costing; instead you must define FIFO or AVERAGE in the Costing Method (A25) system control value.

This system control value controls the inclusion of purchase order estimated additional charges, including vendor item additional charges.

You can define estimated additional charges for an item during purchase order maintenance using these screens:

• The Work with PO Header Estimated Charges Screen allows you to define an estimated charge to apply to all of the detail lines on the purchase order.

• The Work with PO Detail Estimated Charges Screen allows you to define an estimated charge to apply to a specific detail line on the purchase order. If the Default Vendor Item Additional Charges (I21) system control value is selected, the system defaults any vendor item additional charges to the Work with PO Detail Estimated Charges screen.

For more information: See Maintaining Purchase Orders (MPOE) for more information on working with estimated charges on a purchase order.

Example of receipt cost when SCV G29 is selected: An example of how the system determines the receipt cost of an item when the Include Purchase Order Estimated Charges in Receipt Cost Calculation system control value is selected.

Purchase order detail line:

Item	A123
Cost of item	25.00
Quantity	10
Vendor item addl charges	16% (duty) Note: The system includes vendor item charges only if the Default Vendor Item Additional Charges (I21) system control value is selected.
PO addl charges	3.00 (freight)
	2.00 (brokerage)

Receipt cost calculation: (item cost + vendor item charges + PO charges) = receipt cost

(25.00 + 16% + 3.00 + 2.00) = 34.00 x 10 = 340.00

 

Leave this field unselected if you do not want the system to include purchase order estimated additional charges, including vendor item additional charges, in the receipt cost of an item.

Example of receipt cost when SCV G29 is not selected: An example of how the system determines the receipt cost of an item when the Include Purchase Order Estimated Charges in Receipt Cost Calculation system control value is unselected.

Purchase order detail line:

Item	A123
Cost of item	25.00
Quantity	10
Vendor item addl charges	16% (duty)
PO addl charges	3.00 (freight)
	2.00 (brokerage)

Receipt cost calculation: (item cost + receipt charges) = receipt cost

(25.00 + 16%) = 29.00 x 10 = 290.00