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SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
06-10-2013, 01:01 AM
Post: #1
SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
hello!!!

Is it possible to automatically add the shipping cost upon purchase of goods to the selling price of the products???
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06-10-2013, 08:08 AM
Post: #2
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
No

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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06-10-2013, 11:42 AM
Post: #3
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
Hi:

We have been thinking for a long time about something similar, but there is no obvious way to do it.

We think the best way is to add it to standard cost as shipping cost is obviously a cost, adding to selling price leads to many other issues.

You receive goods from suppliers in shipments. Each shipment has several items and one cost. How do you distribute the cost of the shipment? By weight of the individual items, by volume, by value? By any combination of the three?

Every cost distribution system will be unfair. It's time to decide which is "less unfair". For us makes more sense "by value" because it's easier, and it involves less variables, so less human errors.

But also, any way used it is not exact as probably the next shipment of the new item will have a different cost (due to it was "mixed" with different items, or different shipper, or different conditions with the same shipper), so there will be many adjustments to standard cost.

We are happy to dig a bit deeper into this, to see if we all reach a kind of agreement and something can be coded.

Regards,
Pak Ricard
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06-10-2013, 12:09 PM (This post was last modified: 06-10-2013 12:09 PM by phil.)
Post: #4
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
I am a bit confused... and I grant you, it is easily done :-)

Why would one ever add a shipping cost to the selling price?

I can see why you would want to include shipping costs in the landed cost of items - that is what the shipment costing module is all about of course... the debate about how and on what basis to apportion costs I understand - we currently have only the option to apportion based on value and we could look to apportion on other bases.

I just don't get why you would add shipment costs to the selling price?

Normally the best way to set selling price is by a market analysis of competing/substitute products.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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06-10-2013, 01:28 PM
Post: #5
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
Hi Phil:

I 100% agree with you about the "price or cost" thing. Shipping cost MUST be added to the standard cost.

We tried shipment module long time ago and it did not added any special advantage, so we shut it down. Now I just discover it has a "Shipment costing module". It is the best news I could get on a Monday morning :-)

Could you please point me to the script, so I can study it? maybe we were just reinventing the wheel...

Regards,
Pak Ricard
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06-10-2013, 02:27 PM (This post was last modified: 06-10-2013 02:30 PM by phil.)
Post: #6
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
That's great that an experienced webERPer like yourself can find a new block of functionality that has been there since the start :-)

Shipments.php for setting them up and ShipmentCosting.php - you can have any combination of purchase orders in the shipment and it only allocates the costs against those items actually on the shipment.

See http://www.weberp.org/weberp/doc/Manual/...=Shipments

Did you ever play with the freight cost calculator - which works based on parsing out the city address from the address to match to records of freight cost by carrier. I am thinking of recycling this for my integrated web-shop.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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06-21-2013, 01:11 AM (This post was last modified: 06-21-2013 01:25 AM by MacPhotoBiker.)
Post: #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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06-21-2013, 02:27 AM
Post: #8
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
Thanks everyone....

I'm just new to this system that's why I am studying every bit of it.
I am glad that your willing to help.

I appreciate all your efforts to find answers.
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06-25-2013, 11:39 PM
Post: #9
RE: SHIPPING COST FROM PURCHASE OF GOODS AUTOMATICALLY ADDED TO SELLING PRICE
meisam,

maybe you could describe what you try to achieve? I think there are basically two concepts to consider, the accounting concept, and the business concept. As for accounting, freight costs obviously can't be added to the sales price. As for a business concept, I somehow understand what you are trying to do, but if you could provide some more details, chances are somebody might have found a solution already.

MacPhotoBiker
Just Core Business Inc.
[url]http://www.justcorebusiness.com[/url]
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