One of the first things to do while creating or importing a product into Openbravo is to inform Openbravo about:
- the initial Cost of the products if any, by entering it in this tab.
Keep reading to learn how to do it.
- and the initial Stock of the products if any, by creating and booking a Physical Inventory.
Overall this tab allows to:
- define the Cost of stockable products, that cost can either be an standard cost or an average cost.
- define the Cost of non stockable products, that needs to be an standard cost.
- Same way either a "Standard" or an "Average" Costing Rule needs also to be defined for the Organization as the way to calculate the cost of the products' transactions within that organization.
- review the average cost calculated by the Costing Server when using an "Average" Costing Algorithm.
Note that when using a "Standard" costing algorithm the cost of every product transaction is the "default standard cost" entered in this tab.
Also note that "default standard cost" can be used by the Default Cost method whenever it is not possible to get the price of a transaction for which its cost needs to be calculated
- Average algorithms override the behavior of the "Default Cost" method prioritizing the use of the current "Average Cost" if any.
- and finally to have a view of all the input transactions of the product which have impacted on product cost calculation.
- Input transactions such as vendor receipts are the ones which impact on product cost calculation, therefore "Inventory Transaction" field clearly reflects those ones one by one.
- Same way, a "permanent" manual cost adjustment executed in an output transactions such as a "Goods Movement From" (M-) impacts on product cost calculation, therefore "Inventory Transaction" field clearly reflects these type of output transactions.
- The very last transaction informs about:
- the last cost valid until a given ending date
- and the total amount of units of that product which are valuated at that cost.
If the Openbravo instance has been upgraded and therefore migrated from a version prior to 3.0 MP13 the costs calculated by the "legacy" engine are also visible here.
It is possible to recognize them by their cost type:
- Legacy Average
- and Legacy Standard.
If the Openbravo instance has not been upgraded, "Cost type" is set as "Average".
The way to define the Cost of a product implies to enter below detailed information:
- The Organization for which the calculated costs apply to. Note that the organization needs to be a Legal Entitytype organization.
- the Cost Type. There are two cost types available Standard and Average.
- the Cost of the product, that cost can either be the standard unit cost of the product or the average unit cost of the product.
- An Starting Date when the initial product cost entered is valid from.
- An Ending Date, when the initial product cost entered is valid until, i.e. 31-12-9999.
That is the same as saying that the cost entered is valid until a new movement of that product dated on a given date prior to 31-12-9999. Obviously that new input movement will change the product cost.
- the Manual flag, allows you to differentiate the cost transactions you have manually entered from the ones automatically created by Openbravo.
- manual ones created by you while entering default product cost information should be checked as Manual.
- automatic ones related to Material Transactions bookings will not be checked as Manual.
- the Permanent flag blocks the ability to delete the cost manually. All costs should be set as Permanent.
- the Warehouse allows to have a different cost by warehouse when desired and whenever the Costing Rule defined allows to get that. Note that you should not fill this field if the Costing Rule does not have the Warehouse Dimension field checked.