Direct Costs are distributed amongst all products on a Purchase Order when performing a Stock Receipt, which will impact the Cost of Goods Sold for each product.
The options available are:
A Purchase Order contains two products:
- 2 x Product A ($40 each, 0.5kg each) - total of $80
- 1 x Product B ($20 each, 1kg each) - total of $20
The total value of the items on the Purchase Order is $100, with $40 in Direct Costs.
Below you can see the impact on the distribution of Direct Costs depending on the Apply setting selected.
📋 Note: Values are calculated to 4 decimal places, and then rounded to 2 decimal places. This can cause small discrepancies when looking at the direct costs applied to each individual item.
| Value (selected by default) |
The distribution of Direct Costs is based on the % value of the product compared to the total Purchase Order value.
- Total Purchase Order value: $100
- Product A value: $80, direct costs $32 (80% of the total PO value)
- Product B value: $20, direct costs $8 (20% of the total PO value)
|
| Quantity |
The distribution of Direct Costs is based on the % quantity of the product compared to the total Purchase Order quantity.
- Total quantity on the Order: 3 items
- Product A quantity: 2 items, direct costs $26.80 (67% of the total PO quantity)
- Product B quantity: 1 item, direct costs $13.20 (33% of the total PO quantity)
|
| Weight |
The distribution of Direct Costs is based on the % weight of the product compared to the total weight of the Purchase Order.
- Total weight of the Purchase Order: 2kg
- Product A weight: 1kg, direct costs $20 (50% of the total PO weight)
- Product B weight: 1kg, direct costs $20 (50% of the total PO weight)?
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