Q1: I would like to know how much an inventory item is costing me. Where should I look for costing in MOD2?
A1: MOD2's recommended way to see costing for an inventory item is go to inventory display, select an inventory item, and then go to the cost-sheet button. You will see in the cost-sheet the "true cost" and the other related price buckets. You will also seeuseful statistics about your inventory item such as average buying
price, average selling price, historical prices and more
Q2: You mentioned, "true cost" and "price buckets" in your last answer. What is true cost? Howdo I change the values for the true cost?
A2: "True cost" refers to a special MOD2 feature that calculates your inventory values based on your purchased cost for the goods and any associated expenses or charges for that item. "True cost" values
are transaction driven. When you ask the system about the "true cost", the system is able to back track any portion of the item, figure out for each receiving the originating purchase contract or process,
and back track further for any associated costs related to the goods. Using "true cost" MOD2 is able to calculate a real value for the cost of the goods. No approximations, no averages, no first in
first out. Say you are importing one item in one purchase contract. Say a portion of the item shipped via Air and you paid $0.50 extra per unit. The rest was shipped by boat. Even though it is one
item, and from one booking price, using "true cost" MOD2 knows that a portion of the goods cost more than the rest. If you sell the goods all to one customer at one selling price, your profit using
"true cost" is based on two different costs
True cost values can not be changed. If you change the transactions related to the true cost of the item, the system dynamically changes the true cost values. Examples of activities that alter the true
cost of an item include changing the booking price, associating an expense with a purchase contract or process, setting a duty% for purchase agreement, setting a fixed cost per item for a purchase
agreement, modifying the working loss of a process, and more.
Q3: What if I do not want to use true cost? Is there a way that I can associate my own price for costing of an inventory item? Is there a way that I could possibly associate multiple costs with an
A3: Yes there is. MOD2 allows you to have nine inventory "price buckets". Traditionally the first bucket has been called "summary cost". You can choose and edit the bucket titles. You can select
how many buckets you would like the system to manage. Unlike true cost values, inventory bucket values can be changed and they apply to an inventory item globally. To change the values of an inventory bucket, from the main menu, go to inventory [F2], then to modify [F3], select an item, and follow the prompts.
You can associate multiple buckets to be related for costing. When you run your inventory reports, you can select which bucket you want the system to use.
Q4: How do I edit the labels for the "price buckets"?
A4: Typically this is done with the help of your MOD2 system administrator. Go to the main menu, go to Options, go to Installation, and select Inventory Parameters. You will see a screen where you
can choose how many price levels or buckets are defined and the bucket names. We recommend that you keep the name of the first bucket "summary cost price / cost price"
Q5: What are some of the common inventory bucket labels in use in MOD2 installations?
A5: Depending on your companies needs, you can customize the labels for your own needs. Here are some of the common bucket labels we have seen over the years:
"LDP price", "JOBBER price", "LINE price", "MARKET price", "CHAIN STORE price", "SHOW price", "BOUTIQUE price", "RETAIL price", "WHOLESALE price", "IN BOND price", "ALT COST price", "FIN STMT price", and "MANAGER price".