Part Costing Methods

 

Before getting started with creating part markup contracts (Adding a Parts Contract) , it will help to have an understanding of the different costing and pricing methods that can be used in EMDECS.

 

When you sell parts through a counter sale or a repair order in EMDECS, the part sale prices are based either on a markup of the part purchase cost or using retail prices (either a fixed retail price or a markup/discount of the retail price).  The most common choice is to markup based on cost, as this ensures your part sales continue to be profitable when part purchase costs increase over time, and does not require manually maintaining retail prices for your parts in EMDECS.

 

Your EMDECS system will be set with a default costing method for new parts.  If you need to change your default costing method, please email us at help@brightorder.com, or call us at 1-888-205-8817, and ask to change your COSTINGMETHOD system parameter to the appropriate default for your business.  Individual parts can be set to a different costing method from the part settings screen (Parts menu → Part Master → search for and click on a part number and select the Costs & Pricing tab).

 

The following markup costing methods are available in EMDECS:

 

Average :  Part price is marked up based on the mean average part cost. 

Standard :  Part price is marked up based on a standard cost.  The part cost and price will not change over time unless you manually update the standard cost, by updating individual parts, importing an updated parts price list, or using the Monitor & Update Standard Costs tool (see section titled "Monitor & Update Standard Costs " ).

Last :  Part price is marked up based on your last or most recent purchase cost of the part.

Landed :  Part price is marked up based on your last or most recent purchase of the part, including any added costs when the part is received and invoiced, such as freight fees.  Add on costs are divided between all parts received on the purchase invoice.

Average Landed :  Part price is marked up based on the mean average part average cost, including any added costs when the part is received and invoiced, such as freight fees.  Add on costs are divided between all parts received on the purchase invoice.

The Retail Markup % and Retail Price fields are only applicable when a discount contract is used (Please see Adding Part Contracts in KB).  Entering a retail price or a retail markup percentage will not affect the price of parts when a cost markup contract is used.  If you are using discount contracts, the discount is applied to the retail price.  If you select the "Use Retail Markup %" option, this will add a markup on top of the retail price instead of discounting the retail price.

 

 

If you have multiple inventory warehouses, you may see differences between the company costs in the top panel and the warehouse costs in the middle panel.  This depends on whether you have us enable a "cost by warehouse" system parameter in your EMDECS system.  If cost by warehouse is enabled, each of your inventory warehouses will keep track of its own purchase cost history.

 

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If cost by warehouse is enabled, and you want to import part costs in bulk, you must use the Import Parts Location Details tab from the Part Master screen to upload different costs for each of your warehouses.