You can add extra costs to a purchase order. Extra costs include shipping or third-party costs that are not included in the price of the item. These costs are often not billed to a third party, nor the vendor.
These costs can be averaged into the cost of an item to give an accurate profit and loss report by enabling the client setting Consider PO Extra Costs when Calculating Product Costs. An extra column will display next to each line item in the PO: Extra Cost Per Unit.
To use this function:
- The client setting Enable PO Custom Extra Cost per Unit must be enabled.
- From the Purchase Order details, select Upload extra cost per unit from the Action menu. Here, you can download the template, add the extra costs, and import it back.
Shipping and Other (field on PO Detail page) costs
The cost of shipping and other costs is divided per unit. The method of calculating the PO extra costs per unit is based on the following client setting, Divide PO Item Extra Cost using:
- Equally – For example, if the product cost $50.00 and shipping costs $5.00, the average cost on the product’s Purchasing page (Product > Toolbox > Purchasing) will be $55.00. If you ordered 2 units with a total PO shipping cost of $5.00, the average cost will be divided among the units ordered, resulting in an average cost of $52.50.
- Cost Based – if there are several different products in the with different costs, the extra costs will be distributed in proportion to the items’ cost, and then divided per unit of each item.
- Weight Based – if there are several different products in the with different weights, the extra costs will be distributed in proportion to the items’ weight (product weight). and then divided per unit of each item.
You have the option to exclude shipping costs in the PO Grand Total, such as when you are paying a third party for shipping. This is controlled by the client setting Do not include Third party shipping in PO Grand Total.
Custom extra costs
There is a separate client setting Enable PO Based Extra Costs. When enabled, there will be an action on the PO detail page, Manage Extra Costs. On that page, you can enter and define additional costs. You will be able to set the distribution method per unit of each cost. Custom extra costs will not be included in the PO Grand Total.
Small order item fee cost
If a Small Order Amount and Fee has been configured on the vendor, the fee will display in the Small Order Fee field, whenever applicable, to be calculated in the PO total cost.
No item cost
Read about no-cost items here.