Increase Component Costs by

Increase Component Cost by %

This facility allows you to increase a component cost for price by a percentage factor. If enter 10% here the component will reflect an increase of 10% in the "Price for costing purpose" cell from the price grids first price. This can be used for many reasons one being a freight factor addition. Some supplier's freight costs are quite high so this facility provides an increase factor to allow you to cost in the freight value.

At the Suppliers Card there is an opportunity to set a default increase percentage value. This will become the standard. So when you add a new component to this suppliers list the default Increase % value appears on the Components Editor screen.

You can change the value at the component editor for individualisation of component value factors.

Lets say the component cost is $1.00 at the first line of the component qty grid.

If you have a 10% factor in the "Increase Component Cost by %" cell the "Price for costing Purposes" will become $1.10. This is one way of dealing with excessive freight costs or other factors that add up to make the component cost higher than standard list.

In this example you can see 12% has been set as 12%. This may have been done because the supplier has a high freight or small order surcharge. You could actually go through invoices from suppliers for a period of 12 months and determine what the actual percentage increase is for the supplier and then add it in here.

By adding this value into the supplier card and saving, every time you create a component assigned to this supplier the component will get this factor added to the price for costing purposes. But wait....

If you already have components in the system assigned to the supplier card those components will not get the factor added unless you press reset all.

If you decide to change the percentage factor (say from 12% to 14%) you have to press the Reset All button to make the change for all of the suppliers existing components.

Warning
At the component editor you can change the Increase component cost from the supplier card default so as to make individual adjustments. If you press Reset All you will reset these individual adjustments.

Here you can see the effect that Increase Component Cost By has on the price for costing purposes.

The $51.05 Price for costing purposes has been effected by the increase component Cost factor:

So when you add this component to a product directly to an order the cost factor will be $51.07.