Main Tab

Define inventory costing and pricing parameters on this tab.

Options Reference

Each option and field on the form is described below. Mandatory options and fields are highlighted in red.

Calendar

Select the calendar that you want to be applicable in terms of summarising inventory transactions by period (for reporting and enquiry purposes).

Costing Method

Select the costing method used system-wide to calculate the value of inventory and the cost of goods. You can select:

Average Cost - If selected, Greentree uses the item average cost. This is calculated by Greentree Desktop. each time a relevant transaction is processed for the item, and updated into the Costing Maintenance form.
If you allow item over-selling and you use an average costing method, an automatic cost adjustment transaction may be required to ensure the item's average cost is calculated correctly when the item is received subsequent to an over-sell.
Standard Cost - If selected, Greentree uses the item standard cost. This cost must be entered for each item, into the Costing Maintenance form.
Last Cost - If selected, Greentree uses the item last cost. The system updates this cost into the Costing Maintenance form for each item, using the cost of the last transaction.

Use as default for data entry

This option is enabled if a Standard Cost method is selected. Select this option if you want the cost to be the default cost price displayed for an inventory item during purchase order and invoice entry. If no standard costs are located, at either a location or a master level, a cost of 0.00 will be returned.

Costing Level

Select whether you want to maintain costs at a location level or a master level. This is only applicable if you are using locations. If you select Location Level, you can set up costs by location, and the system will update costs where applicable at a location level, using the location associated with each transaction. During transaction entry, the cost that defaults to the transaction line will be using the location for the line

Information

Greentree does not create or maintain a standard cost at a master level when location level costing is in use because this cannot be determined using transaction entry, as average and last costs can be. If you are using both standard costing and location level costing, a system script is available to set up standard costs at a master and/or mass location level.

If you select Master Level as the costing level, only one cost (average, last, or standard) is maintained for each item, and used during transaction entry regardless of the transaction line location (where locations are in use).

Costing Tax type

Select whether you want line items entered using the Inventory Transaction Entry function to be inclusive or exclusive of tax. This is a default only, and you can change it during transaction entry. Inventory costs are always maintained and displayed in Costing Maintenance exclusive of tax.

Costing Decimal unit

Select the number of decimal places you want costs to be initially displayed to.

Information where costs are converted between tax types (exclusive and inclusive) additional decimal places displays to ensure calculations are consistent.

Costing Allow system cost change

Select this option to enable users to edit costs the average and last costs.

Pricing Level

Select whether you want to maintain item prices at a location level or a master level. This only applies if you are using locations.

If you select Location Level, prices must be set up by location. During transaction entry, the price that defaults to the transaction line will be using the line's location.

If you select Master Level, the item price will not be dependent on the location.

Pricing Tax type

Select whether you want prices to be Inclusive or Exclusive of tax.

Information For companies subject to North American sales tax, this defaults to Exclusive and you cannot change it.

Pricing Decimal unit

Select the number of decimal places you want prices to be initially displayed to.

Information where prices are converted between tax types, additional decimal places display to ensure calculations are consistent.

Pricing Markup Indicator

Select a markup indicators to apply to your system pricing.

Pricing Cost base

If you have selected a markup indicator other than Markups/Margins Not Used, you must select a cost here. This is the basis for calculating the markup or margin. The pricing cost base does not have to be the same as the costing method.