Use customer overrides primarily for contracts and rebates. By entering a cost override in a matrix cell, the price sheet cost remains intact, but the sales order reflects the cost override.
Apply a cost override to:
Associate a cost override with the matrix cell for either cost of goods sold cost (COGS Cost) or commission cost (Comm Cost).
Assign the cost override to direct sales or to normal sales and credits.
Assign a cost override code.
Note: If the Search For Cost Overrides During Pricing control maintenance record is activated, the system includes overrides when searching for prices.
To apply a cost override to an individual matrix cell:
From the Maintenance menu select one of the following to display a matrix maintenance screen:
Buy Matrix - Displays the Quick Buy Matrix Maintenance window.
Sell Matrix - Displays the Quick Sell Matrix Maintenance window.
Enter the necessary information to display the matrix cell.
Click the Cost Override tab.
The Mode column lists the following for which you can apply cost overrides:
Default COGS - Applies to all transactions for products in this matrix cell. This includes normal sales and credits. The default also applies to direct sales if an override is not set for directs using the Direct COGS mode.
Direct COGS - Applies to all direct sales of products in this matrix cell. If an override is not set for the Direct COGS mode, but one is set for the Default COGS mode, the default override applies to directs as well.
Default Comm-Cost - Assigns a commission cost override to the products included in this matrix cell. The default also applies to directs if an override is not set for directs using the Direct Comm-Cost mode.
Direct Comm-Cost - Applies to all direct sales of products in this matrix cell. If an override is not set for the Direct Comm-Cost mode, but one is set for the Default Comm-Cost mode, the default override applies to directs as well.
For a detail lot item, if a cost is not defined in the detail lot record, a COGS/Comm Cost override has no effect on the costing of the detail lot item, and Average Cost will be used. If a cost is defined in the detail lot record, the system uses that cost.
In the Effective Date column, do one of the following to define an effective date for the override:
Leave the column blank - Uses the current effective price sheet to calculate the cost override on the order.
Enter the price sheet date - Overrides the price sheet in effect for the order date.
If you enter a date, the system always uses the price sheet in effect for that date. Therefore, if a price increase takes place, the system ignores it and uses only the values it finds on the date entered to formulate the cost on the order.
Note: You can also use the Price Date field on the Sell Matrix Maintenance window to assign a different price date. For example, you can offer a customer a better price on an item than what is on the current price sheet by changing the price sheet date to a previously dated sheet that has a lower price. Use the Price Date field only to base your pricing formula on an historical price sheet. Make sure the cell expires when the discount expires.
In the Basis column, enter the cost basis from the price sheet.
Note: You cannot use the Ord COGS or Ord COMM basis names in this field.
In the Formula column, enter the formula that defines the cost override.
Note: If you enter a net amount ($) in the Formula field, you must also enter a basis name in the Basis field, even though the system ignores the entry.
In the Code column, enter a code that explains why a cost override is being assigned to the matrix cell. Cost override codes are defined in the Valid Cost Override Codes control maintenance record.
By creating codes such as "Rebate," "Quotation,"or "Updated Cost," you can spot and track trends throughout your company. For example, if users often apply the Updated Cost cost override code, then perhaps you should analyze your product cost updating procedures.
When you run the Customer Sales Rebate Report you can include a list of cost override codes to find out how many cost overrides were allowed for the reporting period.
The following control maintenance records, if enabled, affect cost override settings:
Prompt For Cost Code On Cost Override In Matrix Maintenance The system prompts, upon exiting the matrix cell, to enter a cost override code to explain the reason for the override. If no codes are defined and the system requires a code, you can make a free-form entry in the Code field on the Matrix maintenance Cost Override tab.
Check For Rebate Information For Matrix Cell Cost Overrides The system prompts to warn or require you to include rebate information before exiting the matrix cell.
Save your changes and exit the window, or continue setting up the matrix cell.
See Also:
Pricing Basis and Formula Guidelines