Verify Cost on Open Sales Order

A good way to verify that the correct cost is being assigned to each item is to catch it before the sales order is posted to Accounts Receivable.

While the sales orders are in the Invoiced Order Holding File (Task 2 in Order Processing), run the Daily Sales by Product Code report.  This report is found in:

• Order Processing (Module 6)
  • Daily Checkout/Summary (Task 11)
    • Daily Sales by Product Code  - Holding File (Sub-task 3)

Below is a sample of the information available on the report (use PRE to view on screen instead of printing to save paper):

PRODUCT   ITEM    SOLD     CUST  INVOICE ORDER SLM DONE   QUAN  TOTAL   TOTAL  TOTAL      TOTAL    PERCENT

  CODE      #     DATE       #      #      #    #   BY    SOLD   SALE    DISC   COST     PROFIT    PROFIT

**********************************************************************************************

Supplies   106-1 10/11/01  5215   10222  16526  50  17     1    47.15    0.00   35.20      11.95     25.34

           106-1 10/11/01  6411   10255  16598  12   1     3   141.45    0.00   60.90      80.55     56.95 

                                                           4   188.60    0.00   96.10      92.50     49.05   

           113-1 10/11/01  5215   10222  16526  50  17     6    12.24    0.00    2.40       9.84     80.39                                                              ----  -------   ------ ------    -------   -------

Total Supplies                                            10   200.84    0.00   98.50     102.34     50.96

A quick review of the Total Cost and Percent Profit columns should provide the necessary tools to determine if the wrong cost is applied to the item.  Notice that the report is by Product Code, and within each Product Code are the individual items that were sold, along with the customer number, invoice & sale order numbers.

From the example above, it can be noted that the profit for Item # 106-1 on Invoice 10222 is below the other sale for the same item on Invoice 10255.

Which is the correct profit/cost?  Once the correct figure is obtained, go to Field #8 (Last Cost) on the Item Master – found in the Inventory Control module, Task 17 – and enter the correct cost.  Also change the Last Cost on the Supplier Masterrecord (Task 18, field #8)   Note:  If the correct cost is already on the Item and Supplier records, still continue with the next step, because at the point the sales order (i.e. Inv. #10222) was entered, the wrong cost was on the item and was corrected afterwards.

Then go back to the Invoiced Order Holding File, bring up the order with the wrong cost associated with it and just “Enter” all the way through the order.  The new/corrected cost will be picked up and assigned to the item.  If the above report is re-run, the new cost and profit will appear.