This blog and the following ones will cover how the costs and cost structures are set up and calculated. 

In Common data, Logistics tables, a Cost function can be set up to define various costs associated with a cost nature. This function can be used with purchased products and the cost can be selected to be added to the stock valuation.

When creating a new cost, a cost nature such as Packing, Loading, …etc. can be selected from the drop-down list.

Selecting a cost nature is mandatory. Once the cost nature is selected, there are seven product cost calculations to choose from:

Percentage per net price: This choice allows the percentage to be added to the net price of the document line.

Fixed amount: With the fixed amount, the amount is added to the document regardless of the QTY or any other criteria defined.

Amount per unit: An amount is added to every N quantity of a unit.

Amount by fixed bracket: A fixed amount will always apply based on a range. For example, if the cost is $5 for every 100 LB. If 200 LB is purchased, the cost will be $10.

Schedule: When the schedule is selected, two choices are present: Per unit & Amount, and normally the amount, base, and unit cost are all set in a schedule. 

Weighted amount: The calculation is calculated based on (Quantity * amount / (Weight /100).

Formula: A formula is defined using the item, supplier, and a corresponding table such as ITMMASTER, ITMBPS, or PORDER table.