How does cost calculation work in Quasydoc?
- Customer Quasydoc
1. What is the calculated cost price?
The calculated cost price can be found at product level under the cost price tab.
This price is used to value the stock of produced goods (finished products / semi-finished products).
Purchased products are valued at the price upon receipt, which can still be corrected after receipt of the invoice.
Is calculated on demand (by pressing the "calculate" button) on the basis of standard cost of raw materials + overheads, as defined in the selected costing model.
The cost price is linked to a lot in both cases.
2. What is the standard cost price of a commodity?
This cost price is used to calculate the cost price of produced goods (= calculated cost price).
The standard cost price is fixed, until a new calculation, regardless of the effective prices of delivered raw materials.
If the price is not entered, the purchase price given at the preferred supplier is taken, if there is no preferred supplier, the lowest price of all suppliers.
Price of last delivery: is not used in cost calculation. Is only used in the exceptional case that no cost price is known upon receipt of purchased goods, pending the invoice check.
Tab 'Prices' (graduated prices with date from/to), is NOT used in cost price model. These are currently only used in Quasydoc for (proposal) purchase orders.
Can be entered manually per item or calculated "on demand" via the cost price groups.
3. What are costing groups?
With the help of cost price groups it is possible to determine the weighted average of the price of lots that are in stock at the moment of calculation.
Click on 'Calculate' → weighted average of the price of lots of the products in the cost price group which are in stock at the moment of calculation.
The calculated price is automatically entered in the manual cost price of the products that are in the cost price group.
Cost price groups can be set at: Basic Data > Product > Costing Models > Costing Groups button.
4. What are costing models?
Cost price models can be built from three types of topics (Basic Data > Product > Cost price models):
a. Direct labor cost:
This is calculated based on an "hourly labor cost" to be entered in the parameters tab at company data under local management in combination with the "yield" and "the number of people" per product to be entered in the production tab at product level.
b. Direct material cost:
This is calculated based on the product structure and cost prices as discussed here.
c. Overheads
There are 2 types of overheads:
Production costs
Can be entered per product or product group. Only these can be used in the costing models.
Units to choose from:
Cost of sales
Can be entered per customer, with a start and end date, which can also be imported.
5. How to recalculate a cost model?
You can calculate cost prices in bulk or per product.
You can do that by clicking on the button "calculate" in the section "calculated cost price" in the tab "cost price" of the product. The cost price will get the status "not approved". You can repeat this as many times as you like. As long as the cost price is not approved it is always overwritten and not yet used. You can approve it by pressing the "approved" button next to it. From then on the cost price is used. There can be only one approved version per day.
In bulk, all at once, you do that in the screen "product > cost models", where you select a particular cost model by clicking on it. At the top you will see the buttons "calculate" and "approve price". In the "prices" tab, you can then compare the old and the newly calculated price.
The order in which the products are calculated is arbitrary. If there are multiple levels in the product structure it is therefore necessary to calculate everything in bulk several times. After all, you are not sure that the underlying products were calculated first.
The calculation of the cost price model is only done for production goods (products with a product structure) and trade goods (ticked as sales + linked to a supplier).
An overview of the current cost prices is listed in the screen "products / cost price products".
6. Where is the calculated cost price used?
The calculated cost price is used in the following places:
For the valuation of produced goods taken into stock. The cost price for the lot is fixed at the first reporting of a finished product on the production order. That price is locked in for the entire order.
For the standard report "mailing & reporting / Run report" - turnover evolution. Here the overheads type "selling expenses" are also included.