Direct Unit Cost

Mei

I want to ask about the Unit Cost

In Purchase & Payable module, the Quote nemu, there is a field called " Unit Cost ( LCY ) " and the field called " Direct Unit Cost "

Both of that field will be filled with the value or the cost of the item that I had input in that form

As I know, the valeu for both of that field come from the Item Card ( The value of Unit Cost (LCY) come from the field " Unit Cost " in the Item Card and the value of Direct Unit Cost come from the field " Last Direct Cost " in the Item Card )

But, I had a case that in the field " Direct Unit Cost " in the Quote menu, are a third of the value that shown in the Last Direct Cost's field at the Item Card

Is there anyone can tell me what's wrong with this case ?

Thanks for the attention

mfabian

Let's assume you buy a Container of Bananas in Costa Rica. (Hopefully Costa Rica is far away from where you live).

The container contains 10000 kg of Bananas and the price of the Bananas is $10'000. The "Direct Unit Cost " for one kg of Bananas therefore is $1.0.

Now let's assume that the shipment of this container by ship, train and truck all in all costs another $8'000.

The total price you therefore paied for your bananas to be delivered right to your place is $18'000 which results in "Unit Costs" of $1.8 per kg bananas.
By checking the Bananas, you notice that 1000 kg are rotten and have to be thrown away. You have then left 9000 kg of bananas which cost you $18'000 --> $2 "Unit Costs"

Convert these $2.0 into your local currency to get "Unit Costs (LCY)".

I think you should check for postings in the Inventory --> Item Journal or Item Transfer Journal. You find these entries in table 32, in Field "Entry Type" with values Positive Adjmt. or Negative Adjmt. If you have entries there they might be the cause of the "wrong" "Unit Costs".
Just to come back to the banana-example: Something like a purchase of 10'000 with price 1.0 and a negative adjustment of 7500 with price 0 (like throw away 7.5tons of bananas for price Zero) results in 2500 kg of bananas left with Unit costs of $4 for each kg.


Marcus

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Marcus Fabian
m.fabian@thenet.ch
+41 79 439 78 72

[This message has been edited by fabian (edited 01-12-2000).]

Mei

Thanks for the description to the solution of my trouble

But I had found that the " wrong " was at the beginning transaction of the Item - the first transaction of that Item ( I mean, that the new Item which had been just created and want to be use in the purchase transaction - so there isn't any transaction before that updated the item )

Any suggestion for this trouble ?

Thanks for the attention then

mfabian

First of all it depends on the "costing method" you use on the item. See Item-Card, Invoiding. The costing method determines whether or not (and if yes, how) transaction prices like purchases affect the Unit Cost.

Press Ctrl-F5 on the item card to get all Item Ledger Entries for this item and put a filter on "Entry Type"=Purchase|Positive Adjmt. to gett all entries which might have affected the Unit Cost.

Marcus

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Marcus Fabian
m.fabian@thenet.ch
+41 79 439 78 72

BHT

Maybe you should check the vendor card.
On the foreign trade tab check the currency code. If there is any value in it, that is your problem start.
When create order, the sistem check if the vendor use foreign currency or not. After that it will create some constant that will used to calculate your Unit Cost.
so, empty your foreign trade currency code field, and try to create new order.