The STREAM II PO/Inventory Receipt procedure also supports Manual Supplemental Cost Allocation. Supplemental Cost Allocation is the process of capturing and allocating the additional costs that are incurred during a products inbound journey from the supplier. The additional or supplemental costs are manually added to the cost of the item during the inventory receiving process so that the costs are available at the time that the new average weighted cost for each item is calculated and updated.
Note: The option described in this section is currently supported only in the StreamII application. The StreamV System supports the Freight Adder Logic described in this document but it does not currently allow you to manually allocate supplemental costs.
The Manual Supplemental Cost Allocation procedure takes place during the PO/Inventory receiving process after the operator has specified the items and quantities which have been received from the vendor.
Supplemental Costs can be allocated to receipts that are made against system generated purchase orders and they can also be added to non-purchase order or inventory receipts (receipts that are processed without a system generated po).
Once the PO/Inventory Receiving program has been selected from the menu and the purchase order to be processed has been specified (or a vendor has been selected if you are processing a non-po receipt), and the items and quantities to be received have been specified, you may add supplemental costs to the receipt by pressing the USER2 key from the PO/Inventory Receiving line item screen. A this point, the system displays the Supplemental Cost Allocation Screen.
The Supplemental Cost Allocation Screen displays the permanent or temporary po number that is being processed, 4 different windows that can be used to specify the total amount of each of the additional or supplemental costs to be applied to the receipt, and 4 additional fields which display the total value, total weight, total quantity and total volume of the items being received. The additional fields will be automatically loaded by the system as follows.
Value: The total cost of the items being received (the quantity * the po price).
Weight: The total weight of the items being received (based on the weight recorded in each item * the quantity being received).
Quantity: The Total quantity of all of the items being received.
Volume: The cubic volume being received (based on the cubic field in each inventory item * the quantity of each item being received).
Once the Supplemental Cost Allocation screen is displayed the system prompts you to fill in the four supplemental cost fields at the top of the screen. These fields are labelled Tcost1:- Tcost 4: After you have specified one or more supplemental costs, the system displays the line items being received and it allows you to allocate the supplemental costs (up to four different supplemental costs can be specified).
The allocation of the specified supplemental costs can be done in one of two ways; you may may manually allocate the costs by highlighting a line and pressing the ENTER key to specify the amount to be allocated to each item being received, or you may use the options displayed at the bottom of the screen (1-Alc Total Cost 1 4-Alc Total Cost 4) to have the system allocate the specified costs automatically.
The procedure for automatically allocating one or more supplemental costs is.
5. Press the 1,2,3 or 4 keys to indicate which of the four costs should be allocated.
6. Select which method to use to allocate the selected cost. The allocation methods supported are:
Value based - The cost is allocated across the items received based on the value of the items.
Weight based - The cost is allocated across the items received based on the weight of the items.
Quantity Based The cost is allocated across the items received based on the quantity of each item being received.
Volume based - The cost is allocated across the items based on the volume of the items.
All of the above allocation methods use the information stored in the inventory file to calculate the correct allocations.
7. You may select the allocation method to be used by entering a Y next to the appropriate option in the prompt object that is displayed by the program when you press the 1,2,3, or 4 key.
8. Once you have selected the cost to be allocated and the method to be used, the system displays the supplemental costs that have been applied to each item displayed in the program.
After automatic allocation, you may manually edit any of the allocations made by the system (if necessary) or simply press the SAVE key to add the displayed supplemental costs to the items that are being processed and return to the PO/Inventory Receiving Line Item screen. Please note that the supplemental costs are only applied if the inventory receipt being processed is actually saved. If you add supplemental costs to a receiving transaction and do not save the transaction, the supplemental costs will be cleared.
The Supplemental Cost Allocation feature is only supported for purchase orders that are placed in your local or house currency. You may not add supplemental costs to purchase orders receipts that are processed in Foreign Currency .
The Supplemental Cost Allocation option is enabled or disabled using the System Control File Parameter F248:IRSUPCST. If this parameter is set to Y, the operator is allowed to add supplemental costs at receiving. If the parameter is set to N, the system will not allow the operator to add supplemental costs in the StreamII PO/Inventory Receiving program. If the Supplemental Cost Allocation option is being used, the Freight Adder option should be disabled by setting the System Control File parameter F248:PRFRTADD to N.