Replacement cost used as the base cost
Unit cost is stored at the item level. In the current release, there is no means provided to keep replacement cost at supplier-location level and hence replacement cost does not vary by each supplier shipping location.
Since replacement cost is used as the basis, unit cost does not vary by each location and can be kept at the item level.
Sterling Order Management System Software provides a mechanism to re-compute the unit cost for an item through an API. This API can be invoked whenever there is a change made to replacement cost (or any other time needed) and the Sterling Order Management System Software cost determination logic re-determines the unit cost based on the factors applicable. Sterling Order Management System Software does not automatically re-compute the unit cost when replacement cost changes and currently an external trigger needs to invoke the API for re-computing the unit cost.
When having to resolve the source of the base replacement
cost, it is necessary to identify the primary source of this item
Primary Supplier attribute during item definition. Sterling Order Management System Software supports
items that are sourced from more than one location. This nomination
indicates the default source from which Sterling Order Management System Software can
determine the list of cost factors when procured from a supplier.
When using replacement cost as the base cost, the unit cost is re-computed as:
Unit cost + Landed Cost Factor + Standard Cost Factor (applied after Landed Cost Factor added) = Computed Unit Cost
- Unit cost is the unit cost from the price list of the primary supplier.
- Standard Cost Factor is the Standard Cost Factor of the primary supplier.
- Landed Cost Factor is the Landed Cost Factor of the primary supplier. If either the Standard or Landed Cost Factor of the primary supplier is not defined, the Cost Factor defined for the Primary Enterprise of the primary supplier is used.