Improve Purchasing Accuracy And Workflow With Sage MAS 500
Every release of Sage ERP MAS 500 (soon to be Sage 500 ERP) is designed to help your operations run more smoothly. In this article, we will dig a little deeper into the Version 7.4 enhancements relating to purchasing. Landed Cost improvements make it easier to associate accurate costs of materials and goods. Override capabilities in Inventory Replenishment and Material Requirements Planning give you more flexibility in the purchasing process.
Purchase Order Landed Cost Improvements
The application of landed costs requires flexibility to ensure accurate costing of materials and goods. In a global economy this accuracy is crucial in evaluating vendors and calculating accurate profit margins. Improvements in Sage ERP MAS 500 Version 7.4 increase the flexibility, simplify the process, and facilitate accuracy in applying these costs.
Auto Generate Landed Cost Entry
The most basic of landed cost types is freight. Adding freight expense to the cost of incoming goods applies that cost to the cost of goods, rather than an expense item on the Profit and Loss statement. Version 7.4 includes a new option in Purchase Order, Maintenance, PO Setup, Setup PO Options, on the General Ledger tab, to Post Freight Amount to Item. With the option selected, when freight is entered on a Purchase Order a landed cost transaction is generated automatically during Receipt of Goods to apply the freight amount to the items received.
Assign Landed Costs On Receipt Or Receipt Line Levels
Landed costs were traditionally applied to individual receipt lines based on the item received as either a flat amount or a percentage added to the cost per item. In Sage ERP MAS 500 Version 7.4, you have the flexibility to define how the costs will be applied—either at the Receipt level or at the individual line. Costs applied at the receipt level can be allocated manually or by a number of methods, such as: By Cost; By Quantity; By Weight; By Volume.
New Override Capabilities By Receipt Or Receipt Line
Whether you apply costs by receipt line, by receipt or not at all, there may be times when you need to override those costs to get the most accurate application. As of Version 7.4, you have new override capabilities that allow you to do just that. You can pull up any receipt, override the method, the cost, and the distribution to just what you need.
Vendor Override Capabilities
New Vendor Override Capabilities in Inventory Replenishment and Material Requirements Planning (MRP) give you the ability to override the Primary Vendor on planned orders. In Inventory Replenishment or MRP you can simply select the vendor of choice, allowing for last minute changes should a better opportunity present itself based on pricing, terms, or availability. You can choose the right vendor for the right order every time.
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