Purchase Order Costs Explained

Overview

Sellercloud allows you to add Extra Costs to Purchase Orders along with common overhead costs which usually include expenses on purchased components (PO Subtotal), Shipping Costs, Taxes, and Other Total expenses.

Overhead PO Costs

1. To correct PO costs on each component price, refer to the PO’s Items toolbox, and make the appropriate changes.
2. To add Shipping Costs, Tax Amount, or Other Total expenses over the Purchase Order, refer to the respective PO’s home page, the Total panel.
3. In the upper right, click Edit.
4. Enter the respective values, and click Save.

Extra PO Costs

You can add an Extra Cost Per Unit to purchased items either manually or via a file import. This method allows you to apply a unique extra cost value to each PO item.

Add an Extra Cost Manually

1. Go to Purchasing > Manage POs.
2. Select the Purchase Order you want to add extra costs to.
3. In the upper right, click Edit.
4. Click the Toolbox, and select Extra Costs.
5. On the Extra Costs panel, click the plus icon.
6. In the Add New Extra Cost dialog box, specify a brief explanation of the extra cost added, the Cost value, and the type of cost distribution to be applied to PO items.
7. Click Save.
8. Save the changes.

Add an Extra Cost via a File Import

1. Go to the Items panel that is on the Extra Costs PO’s page.
2. In the upper right, click Edit.
3. Click the Upload Products icon.
4. Select the appropriate file from your computer, and click Save.
5. Alternatively, to save a template prior to file upload, click Download Template. Populate the respective columns. Upload the saved file.
6. Once processed, the Extra Cost Per Unit column is automatically completed.

Divide Extra Cost Automatically

PO shipping, taxes, and other third-party costs can be averaged and divided into an item’s cost automatically as long as they are entered on a PO level (and not per unit). This method allows you to apply a PO based extra cost value which will be divided between the items on the PO.

Example: If a product costs $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 between the units ordered, producing an average cost of $52.50.

Product cost(x) + Shipping cost / Number of units

There are four distribution-type methods when adding extra costs to a PO. Refer to the table below for a detailed description of each one.

Convert PO Cost into Different Currency

When you purchase from international companies, you may need to purchase in the local currency. Sellercloud POs support international currency and let you define the rate of conversion on the PO. Learn more about selling on international marketplaces.

1. Go to Purchasing > Manage POs.
2. Select the appropriate Purchase Order.
3. Go to the General panel that is on the PO’s home page.
4. In the upper right, click Edit.
5. Click the Currency field, and select the appropriate monetary unit.
6. In the Rate To US$ field, enter the requested conversion rate in respect to the US dollar.
   
7. Save the changes.
8. The product’s cost will be entered in the selected international currency, but upon receipt it will be converted based on the conversion rate set here.

Add Free-Cost Items to PO

If a Vendor offers you to purchase the n-th item for free, you are ought to add that item to a PO as follows.

1. Open the appropriate Purchase Order. Alternatively, create a new one.
2. Add all requested items with the relevant cost indicated per each product.
3. Add a free-cost product to the PO scope as a separate line with a zero cost indicated.

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