How item cost and sell prices are determined

Sell Price/Charge Out Rate

If the system is configured to Use Employee and Resource Charge Out Rate, then the sell price is determined according to the setup of the item codes.

If the item code is setup as an Item Type of Item, then the price pulls from the price list assigned to that Business Partner.

If the item code is setup as an Item Type of Labor, then the price pulls from the field Charge Rate on the Job Cost tab on the Employee Master Data for Employee/Staff lines. For Resources, the price will come from the Charge Out Rate field in the setup of Eralis Job Resources.

If the system is not configured to Use Employee and Resource Charge Out Rate, then the sell price is taken from the price list assigned to that Business Partner, irrespective of the item type being labor or item.

Note: The unit prices in the above situations CAN be overwritten.

Costs

If the system is configured to Use Staff and Resource Cost from Item Code, then the cost is taken from the item codes, depending on the setup of the item in Item Master Data.

If the item code has the Item Type of Items, Labor or Travel:

1. Valuation Method is set to Standard with an item cost, the cost is taken from the From Warehouse as set at the Item Master Data level.
2. Valuation Method is set to Moving Average, the cost is 0.00.

Note: The cost in both valuation methods CAN be overwritten.

If the system is not configured to Use Staff and Resource Cost from Item Code, then the cost is determined according to the setup of the item codes.

If the item code has the Item Type of Items:

1. If the item is set up as an inventoried item, regardless of the Valuation Method (being either Standard OR Moving Average), the cost is taken from the From Warehouse as set at the Item Master Data level.
2. If the item is setup as a non-inventoried item, the cost is taken from the From Warehouse as set at the Item Master Data level but the unit cost CAN be overwritten.

If the item code has the Item Type of Travel:

1. Valuation Method is set to Standard with an item cost, the cost is taken from the From Warehouse as set at the Item Master Data level.
2. Valuation Method is set to Moving Average, the cost is 0.00.

Note: The cost in both valuation methods CAN be overwritten.

If the item code has the Item Type of Labor and the Valuation Method is set to Standard with an item cost OR Moving Average, then the cost for:

1. Staff entries is taken from the field Charge Rate on the Job Cost tab on the Employee Master Data.
2. Resource entries is taken from the field Standard Cost in the Eralis Job Resource Setup screen. 

Note: The cost on both valuation methods CANNOT be overwritten.