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SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
06-21-2013, 01:11 AM, (This post was last modified: 06-21-2013, 01:25 AM by MacPhotoBiker.)
#7
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
Phil, PakRicard,

I believe all meisam is trying to achieve is to charge freight costs to the customer, without showing them as freight costs. As for the own accounting, freight costs of course need to be posted to COGS (or at least be expensed). However, same is true for the customer, meisam's sales price is their COGS. Customers often are aware they have to pay freight costs, but they want to see those included in the prices, for the same reason, they need to include it in their own COGS, too.

I'm not very sure if this actually could be implemented. Sales price modification can only happen when selling, because when receiving the goods, there may or may not exist a sales price, a sales order, etc.....

If I were to implement it, I would go the other way round. Rather than adding the freight costs to the sales price, I would offer more options to the way sales prices are set. These are the options that come to my mind:

1) Set a fixed price (that's how it works currently)
2) Add a fixed amount to the COGS
3) Add a percentage margin to the COGS (or calculate a target GP)

By doing it this way, one could eliminate many "ifs" ("if there is a sales order...."), yet meisam's target to charge but not to show varying freight costs would be achieved.

Anyway, since I only reached chapter 3 in my new PHP "bible", I leave it up to you guys to evaluate efforts vs benefits Wink
MacPhotoBiker
Just Core Business Inc.
[url]http://www.justcorebusiness.com[/url]
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RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE - by MacPhotoBiker - 06-21-2013, 01:11 AM

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