Inventory Costing Steps

Any inventory that has been entered from a bill of lading, rather than from an invoice must then be run through a "Cost" routine once that supplier's invoice is received.  Doing so verifies that the cost you assigned the inventory when entering it, is the same as the price charged on the supplier's invoice. The system then posts that invoice directly to Accounts Payable. Not doing this is one of the major causes of inventory not being balanced.

Inventory>File>Receiving and Costing

Select Cost from Invoice.

Supplier

Fill in the information from the supplier Invoice.

When receiving a supplier's invoice, it is recommended that all rolls on that invoice are costed at one time since you can carry much of the same information forward, thus saving many keystrokes.  Information cannot be carried forward if Supplier from Supplier File Only is set to Yes.

Using the F8 key to bring in the supplier name is recommended. This will keep your payables file consistent.

Invoice #:

Type in the invoice number from the invoice copy. If the invoice does not have a preprinted number one can be typed in.

One way is to use the date.  Typing the date in the format of year/month/day will allow easily seeing invoices chronologically.

Invoice Date:

Enter the date of the invoice, and then click F8 to display the on-line calendar.  The due date and accounts payable aging is figured on the invoice date.  The invoice date is used to post to the General Ledger.

Due Date:

The date this invoice is due for payment.

Discount Rate:

Enter the usual discount percentage the supplier allows.  A supplier may offer more than one discount.  Enter the discount rate most often taken when paying invoices.  The discount may be overridden when entering or paying the invoice.

Freight

Extra Charges

Enter the appropriate amounts, if applicable, then check if they are discountable

The other labels are entered in >Utilities>System Options>Inventory>Costing/Receiving> Extra Costing Label 1and Extra Costing Label 2.

These amounts will be carried over onto the payable.  If inventory for more than one store is being costed, these charges will need to be split between the stores on the payable. 

Now click the Insert  bringing up the Cost from Inventory screen.  Choose if this inventory is rolls or items.

When the inventory type is chosen, a screen comes up showing all that type of inventory which has not yet been costed.  This list should not be a large percentage of inventory because this would be only the inventory for which an invoice has not been received.

Once the correct inventory line or lines are found, tag them.

When all lines for that invoice are tagged, click the done .

The Cost from Invoice Screen will appear. If you have accidentally brought over incorrect inventory you can delete it from this invoice.  This will not delete it from inventory.

Tag each line separately to edit or accept the information or click Batch Tagging .  This will bring up all the lines for editing in succession.

Once all of the costing information has been verified, you will be shown the corresponding Accounts Payable record and be given the opportunity to post it to the A/P module directly at this time.  Once the payable has been posted the invoice data cannot be changed as doing so would make it out of synch with the inventory invoice date.  If an invoice is misdated, please see the RFMS support staff for steps to correct this.

As of version 18.0,

Costing Inventory Allows the user to return back to receiving after on Payable.  There are times that the user presses Send to AP but then they realize the invoice total does not match the payable screen. They now ability to "Cancel" the payable and return back into the costing screen without posting anything.

If a customer order has already been job costed and the cost of the inventory used has been changed, that invoice must be un-job costed, the line unassigned, re-assigned, and then the order re-job costed to pick up the correct costs.

This situation can be determined by searching for the particular roll in inventory and then viewing its History to see if any of it has been delivered. You can then make a note of the customer's invoices and proceed to un-job cost them, cost the roll correctly and re-job cost them.

To eliminate the possibility of job costing a customer order with lines assigned to unverified inventory (un-costed), set the system option Job Cost Not Costed Inventory.  If this switch is set to "No" the system will display a red error box on the customer order being job costed. The error message will display the line number containing the un-costed inventory and will abort the job costing routine.

Abandoning a payable for inventory from the Inventory Costing is not recommended a therefore requires an unlock code from RFMS software support. The payable should be voided if it is not wanted.  The inventory will be marked as having its payable voided.