Home > Location Management > Locations > Concepts > Costs/Sells


Two of the most important pieces of information for an item is what it cost you and what you sell it for. When this information is entered into the system you need to tell it the location which it applies to, for example Store A sells this for $9.99. If you only have one or two locations you could enter the cost and sell price for each location. However, if you have ten locations and they all sell it for the same price, it is a waste of time entering ten separate sell prices, one for each location. The problem obviously becomes worse as you increase the number of locations. The system caters for this by allowing you to enter costs and sells for a location group. This obviously eases the data entry burden considerably. Instead of entering a sell price for each of ten locations, you can enter one sell price for the group. In making it easy for you to enter the sell prices into the system, we have just made it harder for the system to work out what costs and sells apply to a location. For example, if I have a sell price for location A and a sell price for location group B, which one should the system use? Is location A even in location group B. We must define some rules to allow the system to work this out.

The system looks at the locations in a strictly hierarchical structure as shown in the diagram below.

The system starts at the specific location and work its way up the tree. A location cannot use the costs/sells for an unrelated location or location group. In the example above, BRKD can use QLD but it cannot use NSW costs/sells. This relationship allows the system to determine whether a cost for a location group is applicable to a specific location. From this it can work out which is the correct cost or sell to use.

When determining the best cost for a location, the system chooses the cheapest cost available for that location or any location group it belongs in. From the above diagram, if a cost is required for BRKD, the system would choose the cheapest cost from BRKD, QLD and ALL. When determining the best sell for a location, the system chooses the most specific normal sell, or if a non-normal (promotion) sell exists, the cheapest sell from any applicable location. If a sell was required for BRKD, the system would choose the normal sell for BRKD, even if there was a cheaper normal sell for QLD. However, if there was a promotional sell for QLD it would be chosen.

This relationship is set up by defining a parent for the location and location groups. From the above diagram, BRKD's parent would by QLD. QLD's parent would be ALL. The ALL location group does not have a parent. A location/location group can only have one parent so a location cannot belong in two different location groups. The parent relationship is defined by entering the Parent Location in the Locations form.

Item ranging has been changed in v5.19 enabling the use of location groups that are not the stores natural parent, but still have the store as a member, to be considered part of the hierarchy when determining the best sell for an item. The parent hierarchy, if it has a sell, will always take precedence, but if no sell is found for that level the alternatives will be considered and the cheapest sell used for ranging.

All locations/location groups which are to be used for setting costs and sells must have the Use For Pricing flag in the Locations form checked on. This is so when you are searching for a location to use for a cost or sell, the system won't bother showing you the location groups which have been defined for reporting.

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