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Purchase Order/Invoice Costs

It would be nice to say that the costs we expect to pay are exactly the costs used on purchase orders and invoices. However, the suppliers have not made it that easy for us. One supplier might give their product costs exclusive of service fees and GST, another's costs include GST. The only constant is that a supplier's costs are made up of one or more of the cost components described above.

The system allows you to indicate what each supplier's invoice cost consists of, for example Cost Ex Tax, Service Fee, Ullage Fee and WET. This is done on the Ordering window in the Suppliers form. When you raise a purchase order, the system can calculate the product's cost by adding up the appropriate cost details described above. This means that you and the supplier are using a common cost. It is not possible to compare one supplier's cost from the purchase order with another supplier's cost because the costs may be made up of different components. If you do want to compare costs, then look at the costs on the Items form. The system assumes that a supplier's cost is made up of Cost Ex Tax, Service Fee, Ullage, WET and GST so you only have to change the suppliers whose costs are not like this.

Is it worth going to all this trouble? Yes. There is one major advantage that you get. When you receive the invoice, it will have a cost for the item as the supplier reports it. Since you have gone to the trouble of telling the system what the supplier cost consists of, your purchase order cost and the supplier's invoice cost should be exactly the same, making invoice matching easy to do.

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