How to use the Added Cost feature on a Purchase Order.

When Ordering parts from a supplier you may have additional costs that may need to be added to each part in order to get an accurate landed cost. OneSource has a built in feature will break down the total freight into charges for each individual item based on one of four things; 

• Quantity
• Weight
•  Volume
• Item Price (Preferred by Most)
  

Item Price is the preferred method because it does not require that you have additional information such as weight or volume for each part. The Item Price method assigns a portion of  the total cost of the added freight  by the parts percentage of the total cost of the PO. You may have items that cost $500 that can absorb a $20 shipping charge where a $10 item can't. A part that is 1% of the total cost of the PO will receive approximately 1% of the added freight charge.

If you are going to use Weight or Volume

• All items must have the weight, volume, or both assigned to it prior to using this feature. 
• On the Purchase Order under the description are 2 boxes that will display Wt. and Vol for each item that already has this info entered
  
• Click on the mag glass next to each part number to get to the Inventory Management screen for each of these items as needed
  
• Enter the weight and volume information on the lower left side of the Inventory Management screen
• For each item that you add information to you will need to reselect the item on the PO
• Click on the drop down arrow and select the item again (it will be highlighted in the drop down screen)

Once you have the weight and volume of each item on the PO you can switch back and forth between the different methods to see which one is the best for your shipment. If you do not have weight and volume for each of your parts, the Item Price method is the best.

To enter the Added Cost to the parts on your PO:

• On the top left corner of the PO to the left of your company name is a grey box with a couple of >> arrows, click on this to open the Quick Display
• Enter a description, ( Freight Costs)
  
• The date
• The supplier; This is the supplier that you received the parts from only if they are the same company that you are paying the additional freight charges to. This is for Accounts Payable so you can enter a bill for the freight.
• If the freight is being paid to a different company enter their name in the supplier box. Additional boxes will open so you can enter multiple charges if needed
• Enter the amount of the additional charge
• Clac Method... This is where you will choose which method that you would like to use in order to divide up the additional charges. you can enter the method that you feel will best suit your circumstances and then at he bottom of the Quick Display box, click on Distribute Costs. ( you will be able to change this latter if you would like to see how another method works. 
• Once you click distribute costs another box will pop up giving you a summary of the PO, the Quantity, weight, and volume for each item. 
• Click Distribute Costs again
• When asked if you wish to receive the items click no (You won't be able to change the methods of distribution and you will have received all items on the PO into inventory)
  
• Evaluate the Add'l Cost to determine if the cost are divided up equitably to each of the parts.

When complete the added costs will be put in the added cost field on the Inventory management screen in stock tab. When you create a sales order the added cost will be combined with the individual cost prior to any calculation for discounts or matrix pricing. The additional costs will not be itemized on the invoice.