This is the last blog for the costing structure, and in this blog, I am going to pick the cost Schedule and go over how it calculates. The cost schedule can be by Amount or Per unit.

When the schedule amount option is selected, the currency, base, and unit are set in the schedule.

Clicking the Range will enable the user to enter from the Lower range to the Upper range and set a Value for each range entered. For example, a schedule is created from 1 to 1000KG at a cost of 50, and from 1001 to 2000KG at a cost of 40.

Once the entry is created and saved. The new cost structure can be assigned on the Product under the Purchasing tab.

When a purchase order is created for a product with 1200 KG at $10.00 cost per KG, and because the schedule is by amount, the system will apply the $40 To the purchase cost (12,000 + 40 = 12,040), therefore, the cost per unit is $10.03

When the schedule Per unit is selected, the calculation will be as follows:

(1200KG * $40 = 48,000) then add the purchase cost (12,000 + $48,000 = $60,000)

The cost per unit will be $50 ($60,000\1200KG).