Updated: April 16, 2020 8:40am

Cost on Vouchers

This section has information about the Voucher Cost field on vouchers. Voucher Cost is an important value because of its potential impact on Inventory Cost and ultimately on the inventory valuations that are entered on financial reports.
There are two primary questions that need to be answered regarding Voucher Cost:
1.    How is the Voucher Cost field populated?
2.    What happens if I receive items into Inventory at a Voucher Cost different from current Inventory Cost?
Cost to Use for POs and Vouchers
Admin Console > Node Preferences > Purchasing > General
The Cost field in the item's Inventory record is the main field for tracking cost. However, there is also an Order Cost field in the item record. The Order Cost field provides an additional field for tracking cost and is used with the Trade Discounts and Foreign Currency Orders features. So which field will be used to populate PO Cost when a user creates a PO (or Voucher Cost when a user creates a voucher)? That will be determined by the "Cost to Use for POs and Vouchers" preference. The default setting for the preference is to use Order Cost on POs and Vouchers. However, the default value for Order Cost field is 0.00; therefore, unless you are doing something special with the Order Cost field, like using Trade Discounts or Foreign Currency Orders, the Order Cost field will be actually be populated from the Cost field.
The following table lists the available options for the "Cost to Use for POs and Vouchers" preference.

Cost to Use for POs and Vouchers Order Cost: If the item has an Order Cost entered in the Inventory record, then use Order Cost on Purchase Orders and Vouchers. If no Order Cost has been assigned to the item (i.e. the item still has the default Order Cost of 0.00), the when creating a PO or Voucher, the item's Inventory Cost will be used instead.
Inventory Cost: Always use the item's Inventory Cost for PO Cost and Voucher Cost.
Trade Discounts: The Trade Discounts option is for a future release feature.

Inventory Costing Method
Admin Console > Node Preferences > Purchasing > General
This preference determines how Inventory Cost will get updated when the cost from the vendor is different than the Inventory Cost. The available choices are Average, Leave, and Overwrite.
The following table lists the available options for the "Inventory Costing Method" preference.

Inventory Costing Method

Average: (Default) The quantities received at the new cost are averaged with the existing quantities at the old cost. For example, Voucher A receives into inventory a quantity of 10 at a unit cost of 10.00. The item's Cost is 10.00. Next, Voucher B receives into inventory a quantity of 10 at 5.00. The item's Cost is now $7.50.
Leave: The item's Cost is left unchanged.
Overwrite: The item's Cost is overwritten with the Voucher Cost value. Use this method if the goal is to always have Cost in Inventory reflect the last cost at which the item was received.

Cost Difference Threshold
In addition, to the preferences in Purchasing > General, you can set a Cost Difference Threshold preference in Node Preferences > Merchandise > Inventory > General. Select to enable the Cost Difference Threshold feature, then enter a percentage in the Provide Warning When New Cost Differs From Old Cost By field. If this preference is selected, when receiving items, if the new cost differs from the old cost by more than the specified percentage, a warning will be issued. You will still be allowed to complete and update the voucher.

Spread Cost
Spreading costs refers to proportionally adding things like a voucher's freight, tax and discounts to the Voucher Cost of all the items received. If costs are not spread, then freight, tax and discount amounts are treated separately.
Freight and tax are real costs that must be paid, so spreading these amounts helps ensure that item cost reflects the true amount paid for an item. IF COSTS are spread, then you will no longer be able to track the freights, fees, etc. separately. If your bookkeeping requires an itemization of these costs, then you DO NOT want to spread cost. Cost can be spread on the PO or on the voucher.

  1. Find and display the desired voucher. Click the Edit button. Click the Voucher Details button.     
  2. Select the General tab. Click the Spread Cost button.     
  3. Select the values that will be included in the spread.    
  4. Click OK.