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File - Inventory - Price Calc

The Pricing Calculator is provided within the standard Inventory master file primarily to assist importers with recalculating a base landed cost price when the item’s default exchange rate changes.

 

Technical Tip

Note that most companies use the Import Costing program to calculate their buy prices, as you can enter all your costs within that program – see "Inventory - Import Costing".

However, you can use the Pricing Calculator to calculate buy prices even if you don't import items. It allows you to enter all your costs and charges – including supplier charges, freight, duties, insurance costs, agents fees, etc. – as well as markups. From those costs, Micronet will calculate your buy prices for the selected item and, if desired, it will also calculate your sell prices.

 

Warning

Before you use the Pricing Calculator, you need to calculate all costs for the item per unit. This can be labour-intensive and time-consuming but it does give you a high level of control over your pricing. Many companies prefer to simply use Import Costing / Goods Received costs to calculate buy prices, and desired markups to calculate sell prices.

To use the Pricing Calculator:

  1. Add a new item or open an existing one.

Refer to "Adding a New Item" or "Updating an Item".

  1. Select the Price Calc tab.

Micronet displays the Item Update screen - Price Calc tab for the item you selected.

  1. Complete the following fields:

 

Field

Value

 

Alt Supplier Code

This defaults to the item's main supplier, but you can select from the alternate suppliers as setup for your stock item.

 

Buy Price Level

Select the buy price source 1-8 for the costing to be based on.

 

Expiry Date

Micronet displays any expiry date for the buy price.

 

Buy Price

Micronet displays the actual supplier (overseas) buy price rate in their currency.

 

Discount

Micronet displays the supplier’s discount as setup in the alternate supplier pricing table – see "File - Inventory - Supplier".

 

Supplier Charge

Enter the net amount of any supplier charge that applies to this item.

 

Supplier Total

Micronet displays the calculated buy price – Buy Price minus Discount plus Supplier Charge.

 

Exchange Rate

Micronet displays the supplier’s default exchange rate. Local suppliers default to 1.

 

AUD Buy Price

Micronet displays the supplier total divided by the exchange rate.

 

Purchase Units

Micronet displays the purchase units as setup on the Purchasing tab – see "File - Inventory - Purchasing".

 

Sub Total

Micronet displays the new calculated value based on the purchase unit quantity.

 

Duty Rate

Micronet displays the duty rate as setup on the Purchasing tab and as per the duty tables setup in your company settings – see "Edit Company - Edit - Duty Tables".

 

Freight Rate Per

Enter a net dollar amount for freight. This amount can be applied by the item’s weight, volume, by each item, or by a percentage of the subtotal.

 

Calculated Freight

Micronet displays the calculated value according to the Freight Rate Per you entered.

 

Other Charges 1-3

Enter any extra charges that apply to this item, such as handling, packing, insurance, agents fees, etc. Enter the net dollar amount and description for each charge.

Remember to enter these charges per unit.

 

Markup %

Optionally, you can enter a markup percentage to be applied to the final cost price calculated by Micronet.

Alternatively, you can set the Use Category Markups field below to Yes to use category markups.

 

Standard Cost

Micronet displays the new calculated landed price gross of all costs, charges, freight, duty and exchange rates.

 

Use Category Markups

If you want to use the markups for the item's product category, select Yes – see "File - Product Category - Markups".

Otherwise leave this field as No.

 

Transfer Cost To

The Standard Cost calculated can now be copied to any buy price other than the Buy Price Level used as the source buy price.

Select the destination buy price that the costs will be transferred to when you post the costs. For example, if Buy Price 1 is used as the Buy Price Level, you can enter and calculate all the costs and charges and then copy the result to Buy Price 2.
  1. Select the Post button.

 

If the changed buy price is set as a Source of Markups on the Markups Configuration screen in your company settings (refer to "Edit - Program - Markups"), Micronet either automatically recalculates the actual markup or displays the Buy Prices Changed screen depending on the option selected in the Default Markup Method on Buy Change field on the Markups Configuration screen.

If this screen is displayed, select how you want the item prices calculated:

  • Change Sell Use Actual Markup – change the sell price using the Actual Markup entered on the Item Sell Prices screen
  • Change Actual Markup – retain the sell price you entered and change the markup to match
  • Change Sell Use Desired Markup – change the sell price using the Desired Markup entered on the Item Sell Prices screen.

Select the Ok button.

Micronet posts the Standard Cost to the destination buy price on the Sell Price tab, and changes the markup / sell price if selected – see "File - Inventory - Sell Price".