Include outbound freight in cost of an item

jversusj

hello,
i searched the forum but was unsuccessful. If you know of an existing topic, please direct me to it! thanks. we are using NAV 3.7b code with 5.0 executables in SQL. Our costing method is Average.

my question:
a customer wants to buy an item from us. they do not want to see freight on the invoice; they want the cost of the freight included in the cost of the item. so, we increase the sale price to include a freight factor, but how do we increase the unit cost to reflect proper margin (boosted price with same cost = higher margin)?

in my readings regarding cost posting and in my system experiments, it is fruitless to manually alter the cost on the sales line, as the posting routine will retrieve the cost from the item table anyhow and overwrite it. what are some other companies doing with this requirement?

item 123 unit price = 1.00 unit cost = 0.50
assume freight is 0.10 per unit with no markup, so i make the following change to the sales line
item 123 unit price = 1.10 unit cost = 0.60

unfortunately, it posts with unit cost = 0.50.

Alex_Chow

Sales lines are only used as an expected cost.

The true cost of the item is on the item ledger, which is updated after you post the Item Charge on the purchase receipts and after you run the Adjust Cost process.

themave

Alex Chow wrote:

Sales lines are only used as an expected cost.

The true cost of the item is on the item ledger, which is updated after you post the Item Charge on the purchase receipts and after you run the Adjust Cost process.

and since he is using average cost, the freight charge for an individual purchase will never tie out to an invoice, What I would do instead is not use item charges, but set up a resource for freight.
bill that out on the sales order for zero dollars, but with the appropriate cost, you can still adjust the sell price of the primary item to include the freight. the customer will then be billed correctly, the sales statistics on the sales order will also be correct.

hansika

themave wrote:

and since he is using average cost, the freight charge for an individual purchase will never tie out to an invoice, What I would do instead is not use item charges, but set up a resource for freight.
bill that out on the sales order for zero dollars, but with the appropriate cost, you can still adjust the sell price of the primary item to include the freight. the customer will then be billed correctly, the sales statistics on the sales order will also be correct.

Hi Themave,

I am also facing the same problem .

Could you explain in detail what you mentioned.

jversusj

themave wrote:

Alex Chow wrote:

Sales lines are only used as an expected cost.

The true cost of the item is on the item ledger, which is updated after you post the Item Charge on the purchase receipts and after you run the Adjust Cost process.

and since he is using average cost, the freight charge for an individual purchase will never tie out to an invoice, What I would do instead is not use item charges, but set up a resource for freight.
bill that out on the sales order for zero dollars, but with the appropriate cost, you can still adjust the sell price of the primary item to include the freight. the customer will then be billed correctly, the sales statistics on the sales order will also be correct.

I had considered this, but wondered how it would fit in the customer's demand to not see anything but item lines on the invoice/order. I suppose we could suppress output of Resources in the sections, but we'd have to be clever - we do sell some resources (bagging/kitting) in the normal course of business.

thanks all, for your input and confirmation that there is no 'config' approach to this.