Important Notices:

•Cost refers to the cost an item is purchased at from your vendor or the cost of producing an item.

•Food Connex provides multiple costing options, this document will focus on basic costing.

•Food Connex allows separate costs to be used to determine Cost of Goods Sold and for Sales Analysis.

Costs can be viewed and updated by navigating to:

Inventory > Files > Master Maintenance > Selecting an Item > Cost Tab

Food Connex Cloud Cost Structure

Purchase	User updateable purchase cost
Invoice	Last cost from posted receive, PO or user updated Purchase cost field. Always updates when PO or receive posts.
Freight	User updateable or updated from posted receive or PO.
True	Invoice cost + Freight Cost
Average	Average cost is recalculated at time of post on a PO, Rec, or WO made. Average cost is set at time of post on an Invoice. An estimated average is set on an order at time order is created, and on view of post screen. If config: Average Cost Include Freight is enabled the average cost will include freight values from PO and Rec at time of post.
Market	User set cost, optional update from posted receives or POs.
Salesperson	User configurable cost based on True, Purchase, Invoice, Market or Average cost with the Salesperson Pad amount added to it.

Average Cost Calculation

At time of post on a receiving transaction (Purchase Order, Receive, Work Order Made):

•If Current Posted Stock Quantity is Negative

oAverage Cost will be set to Transaction Cost

oIf Reconcilable cost is enabled the difference between the old value and new value will be applied to Inventory and Cost of Goods Sold Adjustment accounts.

▪Negative Quantity x (Previous Average Cost - Current Average Cost)

•If Current Posted Stock Quantity is Positive

oNew Average Cost = Total New Posted Stock Value / Total New Posted Quantity

If average cost is manually changed in the item file while posted stock quantity exists and Reconcilable Cost is enabled the difference in value will be posted to the Inventory and Cost of Goods Sold Adjustment accounts.

COGS - Cost of Goods Sold

Cost of Goods Sold is the cost sent to QuickBooks for a sale. Consult with your accountant to determine the correct cost of goods structure. COGS options can be updated by navigating to System > Config > Config Maint > Search: COGS Method

Sales Analysis Cost

Sales analysis cost is used to calculate profitability. Many clients choose to utilize the Salesperson cost for sales analysis so that overhead costs can be factored in to give a more accurate profitability. Sales Analysis Cost can be updated by navigating to System > Config > Config Maint > Search: Sales Cost Method

Setting Costs

Setting Costs

Food Connex Cloud Cost Structure

Average Cost Calculation

COGS - Cost of Goods Sold

Sales Analysis Cost