Trim Cost Feature

Our latest innovation for inventory is the Trim Cost Feature which allows the cost basis of an item to be adjusted to reflect trimming which must always be performed before selling an item.

 

•See the Kits Tab for how the Trim Cost feature can be applied to kit items.

 

The feature in the Cost/Price tab has two configurable values which are used to set the working cost of the item.

 

The first configurable value is "Trim Yield" is a percentage value that indicates how much of the original product is left after trimming. The "Trim Yield" value is used to calculate the "Trim Cost", which is the basic working cost of the trimmed product.

 

The second configurable value is "Trim Credit" which is a dollar amount that is subtracted from "Trim Cost". This allows you to reduce the working cost of the trimmed items if the trimmings themselves are sale-able product. The creation of the "Trim Cost" feature redefines the calculation of "Landed Cost" (and therefore "Base Cost").

 

When "Trim Yield" is zero it turns off the Trim Cost feature for the item. This is the system default setting as shown in the image below.

 

The formula used when "Trim Yield" is zero: "Real Cost" plus "Freight" equals "Landed Cost".  

 

 

Trim Cost Process

 

1. First a value was entered in the Trim Yield % field for the item.

2. Then the system generated the Trim Yield Cost.

3. Then a value was entered in the Trim Credit field.

4. Now the system calculated Landed Cost for the item.

 

In this image the "Trim Yield" is greater than zero. The formula used for "Landed Cost" is "Real Cost" divided by "Trim Yield" ("Trim Cost") minus "Trim Credit" plus "Freight".