Before using template, you should indicate how the system should calculate the selling price and cost for a finished product on a work order template.
The system determines the cost of a finished product based on the individual component products' price sheets and not the cost listed on the work order. The system uses the cost of each component to sum up the full finished product's cost. For example, you have a finished product for a kitchen sink. The sink contains a faucet ($40.00), a basin ($175.00), a disposal ($75.00), and the drain pipes ($50.00). When the kitchen sink is listed on the sales order, the system calculates the cost to be $340.00.
To select when the system should consider a product part of the process quantity, use the
To determine the selling price and cost for a work order product:
From the Maintenance menu, select Product to display the Product Maintenance window.
From the Additional Data menu, select Work Order Processing to display the Work Order Processing Maintenance dialog box.
In the Calculate Sell Method and Calculate Cost Method fields, enter the methods to use to determine the selling price of the item:
Select the Use Assembled Product Price method to calculate each method based on the price assigned to the finished product. The pricing group assigns this price to the local price basis name that corresponds to the DFLT-LIST global price basis name on the Product Price Sheet Maintenance screen.
Select the Use Sum of Component Prices method to calculate each method based on the sum of the prices of each component used in the production of the product.