Part Unit Cost vs. Receipt Cost
Applies to Shop/Professional Edition
In some cases you may add a part to a work order and the cost applied will be different from expected. A part is entered with an initial base price, but the same part may be received from different suppliers at different unit costs, or at a discounted cost when ordered in bulk. This article explains the unit cost source which is used for parts added to work orders.
1. When you add a part, there is a field on the Identification tab to enter a Unit Cost (base). This is the cost which will be applied by default if there are no inventory receipts for the part.
2. When the part is first created, you also have the option to add an Initial Quantity right from this window. If entered in this field, a pop-up message alerts you "Adds initial quantity to a receipt using base unit cost. Do not enter any amount if you wish to add your quantities manually on the Inventory tab."
3. Manually add receipts or shipments of parts on the Inventory tab. Select the tab for the Warehouse you will receive to, then click Save. Note that you have the option to set the Type field to FIFO (First In First Out) or LIFO (Last In First Out) -- this determines the order in which parts are added to work orders if there are multiple receipts.
4. Right click to Adjust/Receive Into Inventory ...
5. Here, you can set the Quantity and Unit Cost for this specific order. Note that although the part's base cost was entered as $4.19, this shipment of 10 was priced at $4.05 each. When added to a work order, the cost will be $4.05
6. After using 8 of the existing parts from inventory, a new order is received and this time at Quantity 50 the unit cost drops to $3.98
Since the accounting type has been set to FIFO, the next 2 parts will be applied at $4.05, then the following 50 will be applied at $3.98