<img src="https://secure.leadforensics.com/133892.png" alt="" style="display:none;">

As margins around the country continue to contract due to factors such as increases in freight costs, impact of natural disasters, regulatory costs, etc., recognition of the cost of landing raw materials earlier in the supply chain process is becoming increasingly critical.  

A tool like ColumbusFood's Extra Charges functionality is a great way to recognize those charges as early as possible in your business process flow.  By allowing landing costs to be assessed, allocated and recorded at the time of purchase and accrued with the item's expected cost, purchasing managers and cost accountants can assess the impact immediately and are able to react to these market shifts. 

With complete flexibility to assign costs to the entire order or just an individual line, to allocate those costs based on a variety of methods across a variety of cost centers or departments, a purchasing manager can detail all of the related charges and insure that these projected costs are recorded immediately as part of the item's expected inventory cost.

Let's look at an example:

A purchasing agent enters an order for apples and pears from Canada.expected item inventory cost columbus

The following charges will apply to all items delivered and will be allocated by the average weight of each case.Document Header Extra Charges Landed Costs

The apples will also need to be graded — that charge is per case, or quantity received. This item will receive an allocated portion of the import fees, the food safety testing and the inbound freight.Extra-charges-landed-costs

The full expected cost of each line is then shown on the order:Full-expected-cost-on-order

When received, the expected cost is recorded, including the extra charges.expected-cost-is-recorded-including-extra-charges

When the invoices for these costs are finally realized, costs are actualized and any variance recorded automatically.

Analytic reporting, using tools like Power BI, can now be performed to assess cost portions as well as the expected vs. actual cost.Murphy6

Murphy7

 

 

 

 

 

 

 

Trending these costs allows insight into changes in cost metrics, as well as how much of recorded costs is certain, and how much is predicted based on the remaining expected cost at each analytic point.Freight-costs

Now management is empowered with needed information to adjust pricing, projections and forecasts, and perhaps even look into alternatives for reducing the freight that's causing the pain. Further analytics can be performed to review freight on a regional or seasonal basis, for example, or look for an outlaying factor that's causing the increase in freight costs when bringing in less material than usual.

Get the best view of your costs as early in your business process as possible. No crystal ball needed actually. Check out ColumbusFood to learn how.

want to learn more about columbusfood erp solutions

 

Topics

Discuss this post

Recommended posts

What does one do when a client or customer demands that each box produced has a unique identifier? The short answer: master the art of individual box tracking with ColumbusFood.   Some manufacturers use boxes in combination with lot numbers to tell when it was produced in the day’s production run. Box tracking is often seen as a requirement in the dairy and meat industries. I can guess your questions; why would I box track? Why does it make a difference? Box tracking allows the manufacturer to assign individual box IDs and weights. The output of boxes may have the same weight and by using a box ID you see whether it was produced in the beginning, middle or end of the production run. It'll also allow the user to track a box throughout the process. The user can track a box in the warehouse, if it's on a container, loose or not open at all. All aspects of the process can use box tracking, production, warehouse and sales. 
We know—barbeque and swimsuit season is well underway. But that doesn’t mean “summer kick off” events are over. Heck, we just celebrated Fourth of July as well as a huge soccer win for the FIFA World Cup. (Congratulations to the US women’s team—we knew you’d be “kicking off” all the way to gold!) Another summer kick off staple on the verge of launching is our Microsoft Dynamics GP trainings.
Learn how you can easily use Dynamics 365 business logic to manage modifications.  Let's put aside for a moment the whole debate around whether making a modification makes more or less sense than amending the business processes. I’d like to focus on how to conduct those modifications properly.
Improve efficiencies and data accuracy in your food manufacturing business with an integrated pack station solution. After logging into a terminal, the shop floor worker can call up open production orders and report production outputs, either one box at a time (for random weight or serialized box items) or for a quantity that was produced:
What does it take to be a successful solution architect in today's business landscape? Here's a hint — it's not a numbers game like you might think.  
right-arrow share search phone phone-filled menu filter envelope envelope-filled close checkmark caret-down arrow-up arrow-right arrow-left arrow-down