Costings

Costing methods allow you to manage how costs are calculated in Horizon.

Costing methods can be set at the levels:

1. Product
2. Catalogue
3. Company

Company is the lowest ranked, so catalogue and product costing models both supersede company costing. It will apply across Horizon without any further settings being changed.

Selecting a Default Company Costing Method

1. From the Set-up menu, click Company. The Company Set-up window opens.
2. Click Settings, then Costings.
3. From the Default SOR Costing list, click a method. The methods are defined in the grid below.

   Note: If you want to select a FIFO costing method, then the Company option Maintain FIFO records must be selected first.

4. Click Confirm.

Defining a Company Costing Method

1. From the Set-up menu, click Company. The Company Set-up window opens.
2. Click Settings, then Costings.
3. Within the grid, click where indicated to add a new row, or click the green tick at the bottom of the grid.
4. In the Name box, type a name for your costing method.
5. In the Costing list, click a costing method. You can choose from:
   

   Cost Type	Definition
   Item cost (or deal)	Cost on item. Updated by importing cost prices with a terms file.
   Last cost	Last cost on the stock branch. Updated when you purchase from the default supplier, or any supplier if the Pricing and Deals option Last cost any supplier is selected.
   Item cost
   Lead item - cost	Cost of the lead catalogue item on the product. The lead catalogue item can be set by: Changing Lead Catalogue on the product Stock Card. During catalogue import if the Import Files option Set as Lead is selected before starting the import. Catalogues toolbar > Set Lead. Default Supplier – sets the lead catalogue to correspond to the default supplier. Highest.
   Supplier - item cost	The default supplier's item cost. Updated on the Stock Card or when importing a catalogue with the Change Preferred Supplier option selected.
   FIFO	First in, first out. Tracks the cost when an item is brought into stock through to when a line is entered on a sales order.

   
   
6. In the Uplift box, type a percentage increase. This is applied when an item is added to an order.
7. Click the green tick at the base of the grid.

See Also