Quotes Use Cost, Average Cost, or Landed Cost

Big Business 5.0.7 adds the option to have Quotes use the Vendor Cost of an inventoried Item, rather than its current Average Cost. For Items which fluxuate in price, the Vendor Cost may be preferrable for new Quotes.

Big Business 5.0.8 adds the option to have Quotes use the new Landed Cost of an Iinventoried Item.

This Solution explains this option. (5915)

Big Business tracks three Costs for an Inventoried Item:

• Vendor Cost, which is labeled Cost on the Item History, is the last price paid for an Item or the price that is automatically inserted on a new Purchase Order.

• Average Cost is the average value of the inventory on hand, computed from the Total Cost of the Item and its Quantity On Hand, and used for accounting.

• Landed Cost is an entry for the estimating the Landed Cost of an Item. It is automatically updated using the Landed Cost Percentage, whenever the Cost of an Item changes.

The Cost of an Item listed on a Quote can be viewed on the Profitability tab of the Quote. By default, Big Business uses the Average Cost for inventoried Items with a Quantity on Hand, and the Vendor Cost for non-inventoried and out-of-stock Items.

When creating a Quote, which may become a future order, the Vendor Cost may be more representative of the future cost of an Item and preferrable to use for calculating profitability on the Quote.

To set the preference that Quotes Use Vendor Cost:
1. Open the Customer Preferences
2. Click on the Quote Preferences
3. Select an entry under Quotes Use Cost
4. Click OK to Save the Quote Preferences
5. Click OK to Save the Customer Preferences.


Landed Cost and Landed Cost Percentage