How to reflect variable supplier costs?



Hello. My company deals with many overseas vendors and as a result, the
"cost" for many of my items has a surcharge applied to it, based on the
current Euro rate -- thus the true cost of these items is always changing
each time I place an order. What's the best way reflect this curreny
exchange rate discount in my cost for each item? The only thing I can think
of is using a formula in excel and then uploading it to the db each time I
get an invoice, but maybe there's a better way within RMS?
Thanks in advance!




Well, it's an art to maintain it and it will change depending on what system
you are using: HQ or SO. (I mean, costs update is a different process and
your needs can be different)

Basically, what we do is to keep supplier's cost at the "Cost" field on the
"Items Supplied" for every Supplier. You can record there FOB, CIF or
whatever cost you use for reorder, and they can be expressed in Euro or
whatever currency. For SO, this will be only a number there to use for
Purchase Orders.

When you receive orders, you can update "Item's Cost" using a formula like:
ItemCost = SupplierCost * i

You have to calculate your "i" factor, using currency exchange rate, freight
costs, and every surcharge to convert you Supplier cost to your real cost.

Then you have to analyze which items have to be updated and when. Doing it
supplier by supplier can be fine, but you can need other filter or select
items manually.

Do some tests and check it in detail! Hope this helps


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