Item Cost as Base Price in calculating gross profit

Hi All,
We're using FIFO as item evaluation method. If "Item Cost" has been set up as the base price origin for gross profit, where does SB1 get the value for the gross profit base price for an invoice?
I know it is not from any price list, and it is not from oitw.avgprice. Is this item cost calculated using FIFO?
Thanks in advance.

Hi,
Your assumption is correct. It is item cost calculated using FIFO.
Thanks,
Gordon

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Alloting freight on item cost on basis of volume(diffrent way)

Hi all
During GRPO the client wants to allocate freight, custom duty on the cost of item. The allocation of freight should be on the basis of CBM/ Volume. The calculation is shown below:
Item           custom duty     CBM/Volume       qty    unit price    Actual price
Mouse      200rs               3m3                      10      100rs          Cal. shown below
Keboard   400rs               10m3                     20      200rs          Cal. shown below
Note: CBM/volume will be filled by user manually at row level, it cant be picked from master data as it keeps on changing during every GRPO. Custom duty will be also entered manually.
At document level user will enter diffrent freights as:
1. Del order expenses= A rs
2. clearing & forwarding = B rs
3. Doc. charges = C rs
Total freight will be calculated somewhere in UDF=ABC= Rs 10,000(Suppose)= this is total lorry freight
UDF lorry volume= 1000m3
Now calculation
1000m3 costs= rs 10,000
1m3 costs = rs 10
Now considering cost of freight applicable on mouse=3m3(3 meter cube) *10rs=30rs
likewise considering cost of freight applicable on keyboard=10m3(10 meter cube)*10rs=100rs
Now actual price is to be calculated at row level for mouse item=100(Unit Price)*10(Qty)200(custom duty)30(cost of freight applicable on mouse)
actual price is to be calculated at row level for keyboard item=200(Unit Price)*20(Qty)400(custom duty)100(cost of freight applicable on keyboard)
THE PURPOSE OF DOING SO IS THAT USER WANTS THAT ITEM COST SHOULD BE UPDATED WITH THIS ACTUAL PRICE.
Hope it clears you. Please provide some solution how to handle it in SAP B1.
Thanks

I have tried this. but this is only possible when the volume is to picked from item master data. Here in this scenario every time volume changes and so user fills it manually at row level.
So what could be done regarding this?

Gross profit base price

hello sir/ Mam
                    what is
                                Gross profit base price ,
                                    & whear it is define give me with ex. how calculeted

Gross Profit Base Price is defined in
System Initialization > Document Settings > General tab...the very first entry
Depending on the pricelist you select and whether it is on Sales Price or Cost price, the gross profit will be calculated on the documents
Usually Item Cost and Sales Price is selected.
Suda

Should the Goods Receipt Inventory Transaction include Item Cost selection?

When processing a Goods Receipt inventory transaction, the Price List pull down does not display "Item Cost" as a selection.
The user can make the Unit Price field visible and active, compare the cost displayed from the Price List selected to the current Item cost and update if different. This forces the user to be very cost cognizant as none of the price lists available are guaranteed to be equal to the current item cost.
Update of the record can cause a cost revaluation in moving average or a cost varinance account adjustment in a standard cost system.
The companies I have talked to would prefer to select Item Cost in the price list field as they can do in the Stock Posting.
I am looking for further input on this.
Thanks,
Jim

No replies since April 2009, closing.

IS Mining - Formula BTU calucation Base on Coal base Price

Hi all.
we are in to implementation of IS Mining Solution to coal industry. a coal having different characteristics like Ash, Sulpher , BTU , Size of the coal ,
there want to calculate BTU as Base price
     Penalty Calculation for BTU
S.No.     Procedure          USD
A     Base Price of Coal (as per Contract)     - 25 usd
B     BTU - Garranty (as per Contract)     12000
C     Penalty / BTU     (=A/B)     0.002083333
D     Penalty / 100 BTU     (=C x 100)     0.208333333
E     Quantity Shipped (Tonne)     10000
F     BTU of Shipped Material     11500
G     Difference in BTU (=F-B)     -500
H     Total Penalty (=E x C x G)          -10416.66667
     Premium Calculation for BTU
S.No.     Procedure          USD
A     Base Price of Coal (as per Contract)          25
B     BTU - Garranty (as per Contract)     12000
C     Premium / BTU     (=A/B)     0.002083333
D     Premium / 100 BTU     (=C x 100)     0.208333333
E     Quantity Shipped (Tonne)     10000
F     BTU of Shipped Material     12250
G     Difference in BTU (=F-B)     250
H     Total Penalty (=E x C x G)          5208.333333
Can any one guide me how to create a Formula base on above factors
Thanks
Rajesh

Due to iam not getting any feed back iam closing this issue

Base price issue

Dear gurus,
In sale order, Item condition for Base price PR00 is not manual condition type and it cannot be changed manually in VA02 mode as we all know.
Here the issue is: the condition record for PR00 is maintained for a particular key combination and there is only one price for a single validity period. Moreover user does not have authorization for VK11 or 12. But there has been change made in base price and the same is shown in sales order Change log.
I tried all possible ways except debugging. Can anybody give some idea what could have went wrong.
Regards
Praveen.

Dear Praveen
pls consider the below example
condition type       : PR00 ( or anything)
condition record   : Rs 100/-
validity period        : Jan'ry 01st,2000 to Dec 31st, 2098. ( example)
Now, lets suppose
the business decides that this PR00 is changed ( increase or decrease) to Rs 140/- from Jan 10th, 2011.
Now, This is wat we have to do...
Do VK11
enter the c.type, new value & validity period.
The system will automatically consider the new value from jan10th, 2011.
I hope, I am clear.
Rgds
Sumanth.Gururaj
Consultant/Systems Analyst - SAP SD/MM

Base price changed

Dear gurus,
In sale order, Item condition for Base price PR00 is not manual condition type and it cannot be changed manually in VA02 mode as we all know.
Here the issue is: the condition record for PR00 is maintained for a particular key combination and there is only one price for a single validity period. Moreover user does not have authorization for VK11 or 12. But there has been change made in base price and the same is shown in sales order Change log.
I tried all possible ways except debugging. Can anybody give some idea what could have went wrong.
Regards
Praveen.

Hi Praveen ,
Could you please check the following .
1 Click on the Analysis tab on the conditions tab page of the Sales Order .
2. The Page Analysis Pricing screen opens. There u have the pricing procedure and the PR00 Node.
3. Open this node - What you see over here is the various access on this Condition Type . Here also you have a Node .
4. Open This node .
At this point you would see the value maintained and also if the VK11 / VK12 was maintained properly under the correct access ?
You should have your answer after step 4 for sure. My hunch is - the user might have wrongly maintained the PR00 under a higher access which is getting determined rather than the lower access which is desirable.
Please let me know your observation.
Kind Regards
Amitava

How to get the Sales A/R Gross Profit to equal the G/L Gross Profit

Should the sales ledger (S/L) GP base price be set to 'Std Cost List' (SCL) or 'Item cost'?
If so, the General Ledger (G/L) uses the 'item cost' and the S/L uses the SCL - two different costs.
If the SCL and item cost are different (for the same item) how do I balance the S/L GP with the G/L GP when producing financial (G/L accounts)?
Any help or pointing towards help documents would be gratefully appretiated

Thank you Shwu very much for taking an interest in my problem.
We are indeed using Standard costing as our preferred stock costing system (not LIFO or MA) and the 'Standard Cost List' (SCL) is a price list that we are using as a list of all the std costs of our items. Therefore in each item master we set a SCL for an item and then an Item Cost as well (stockdata tab/item cost).
We were told to do this , as in 2006 when we installed 'SAP V2005', the gross profit base price (S/L base price) could not select the item cost by default. You could also not change an items 'item cost' either. I believe this is not now the case as in document settings the 'base price origin' can now be set as item cost and you can alter the item cost by a stock revaluation p.s. we are now using V2007.
So indeed as you say, because at the moment the S/L and G/L look at two different figures and if those figures are not the same the S/L GP will never = the G/L GP.
Scenario 1 - There are a number of reasons why the SCL does not = the Item cost
1. Price rises - where we altered the SCL but didn't know we could alter the item cost
2. Incorrect selection of 'item properties' i.e. not ticking an item as stock which means the G/L does not debit the cost at all.
3. All our manufactured items have an estimated SCL and item cost, but as we dont use BOMs yet, the std cost may not be accurate. (we need to wait till we do a physical stock check)
4. We use item masters for each of our direct labour sales so the cost is an estimate of their hourly rate + NIC + down time etc. So this is similar to (3) above.
5. Supplier carriage on 'goods in' cannot be reflected in the item cost as you never know how much the carriage cost is until you recieve the goods. We therefore set supplier carriage as an 'expense' G/L (purchased not stocked item property)
6. An advantage of using SCL is that you can allow say 10% for wastage or say 5% for carriage cost, whereas you would want the item cost to be the actual purchased cost of the item
Scenario 2 - Use only the item cost for S/L and G/L
1. bar for (6) above it now seems to make sense to select only the item cost for S/L & G/L if we want to close the difference between S/L & G/L GP reports.
2. But I've just been told that a purchase order stamps the SCL cost down not the item cost. very strange, I'll have to look into this.
I do hope my answers make some sense and once again thanks for helping me

Wrong Gross Profit

Hi All,
I have created an A/R Invoice, now when I see the gross profit report it shows wrong base price (zero) and wrong gross profit.
Base Price By was Last Purchase Price.
I am using Manage by Batch No. option.
While A/R Invoice I have selected respective Batches.
But the system has picked up the base price from one transaction which I did not select in Batch selection.
For particular Item there were 3 Incoming trasactions, 2 were opening balance with respective value and last was also opening balance but with value zero.
The valuation method is FIFO.
Can anyone explain me
1.Why the zero value has been picked up in the gross profit calculation and
2.How can I correct this value to have correct base value and correct gross profit ?
Thanks,
Samir Gandhi
Edited by: Samir Gandhi on Dec 5, 2008 5:57 PM

Hi Samir,
Please give the dates of those 3 Incoming transactions. FIFO calculation will always pick the earliest possible transaction which haven't be offset yet.
Thanks,
Gordon

Gross profit for service invoices

Hi Dear;
how can i set gross profit for the service invoices?
best regards;

Hi Dany,
Currently Business One can only work with Gross Profit on Items. However, in future release 8.8 version, methods for calculating gross profit have been improved. Users can calculate gross profit for both item and service types invoices.
Regards,
Candice Ren
SAP Business One Forums Team

Price List Base On Item Cost

Dear All,
Do you know how to set price list base on item cost?
Please advice.
Thanks in advance.
Regards,
Lina

You have the option to use Last Evaluated Price. I don't think Item Cost is available to set as a Base Price for a Price list
Suda

The net price is calculated incorrectly for service items in contracts

The net price is calculated incorrectly for service items. Iu2019m creating a contract for services, transaction ME31K (without service master). At the services level Iu2019m adding u201CConditions Supplementsu201D:
-     PRS (gross price) =1000 EUR
-     Z999 (discount) = -100 EUR
-     ZPRS (cost) = 1500 EUR
The gross price is calculated correctly = 2400. My problem is with the net price, with this example the net price is just 1500 this means that is just considering the condition ZPRS.
Where can I customize the net price determination to considerer all price conditions?
Thanks in adavnced

Hi,
In the service industries area, SAP uses two calculation schemata,
MS0001 for contract/master services (Z999 must be added to MS0001) and otherwise, MS0000. Assignment
occurs according to the Customizing settings defined under
'Materials Management -> External Services Management -> Maintain
Conditions for Services -> Conditions: Schema for Services'. If you want
to use another calculation schema for contract/master services, you must
define this with an own entry under Maintain Conditions for Services ->
Variable Calculation Schema for Services', for example, in the form 'K
WK value contract MSxxxx service schema', if a corresponding schema
MSxxxx has been defined first.
If Z999 is a header discount for the service outline level, it must be added to MS0002.
Like the standard discount condition type ZA00 the Z999 must have Cond. class   A for Discount or surcharge in the condition type setting in the customizing, and no access sequence should be assigned to it.
Please read the notes 798798 and 353482.
Regards,
Edit

Item Cost calculation

Hi to all,
My problem is:
Item Cost is calculate on the basis of unit price, tax is not include. I want that Item Cost should be calculated on the basis of actual price+Tax amount. Please if anyone can help me on this.
thanks & regards
Annu

Hi Anu....
Its easy. Go to Administration > Setup> Financial --> Tax > tax Types>
Double on a tax type whose tax amt need to be included in item cost.
Put the 100% on Non Deductible column and save it.
Now when you select this tax code in transaction its value will go to item cost.
Generally people include CST amount in item cost. So if we give 100% deductible on CST tax Type then its value will go to item cost.......
Regards,
Rahul

Difference between Item Cost and Last Evaluated Price

Dear All,
What is the difference between Item Cost and Price in Last Evaluated Price List. Exactly when are they updated?
Regards
Sibasish

Hi Sibasish,
The "Last Evaluated Price" is simply a price list but can't have a direct manipulation like other price lists. Its values may not involve in any accounting transactions if it's not selected for the concerned transaction any way.
On the other hand the item cost is the cost which is maintained by SAP B1 (until and unless you select the Standard Valuation Method), and it gets involved in the accounting transactions where inventory is involved. For e.g. the "COGS" is calculated on the basis of this value.
Please close this thread if answered ... or please let us hear something more from you on this...

Base price calculation in sales order using Routines.

Dear all,
I have a requirement related to usage of routine in pricing procedure. The requirement is as given below.
A base price for a material is entered in the contract manually using a customized condition record.Later a sales order will be raised with reference to contract. now we need to bring the price entered in the contract to sales order after some calculations done using a customized "Z TABLE"
We are trying to use routines to trigger to calculate the base price in the sales order.
Please suggest what type of routine to be used in such cases(ex formula,pricing etc)
Also please go through the below mentioned example for better understanding.
Contract price : Quantity 3: base price 10,000 per day Total : 30,000 perday
ZTABLE : number of days per month will be maintained in the table based on the working days.
Sale Order : Quantity 1 : Month working days 23 total 2,30,000 (We need to calculate this total and display as base price in sales order)
Please suggest how to address this using routines.

Dear Mudigonda,
As per your scenario you are creating sales order with reference to the contract and here in contract you are maintaining the manual price . that means the same manual price has to copy to sales order level then as per the calculation rule it will multiply with your Z table value .
For this requirement you can make some changes in copy control from contract to sales order, here at item category level you have to change pricing type to 'B' so that what ever your manual price value will populate to sales order level after that due to calculation rule value will change .
Regards,,
C.B Reddy.

Item Cost as Base Price in calculating gross profit

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