Costing Methods and Landed Costs

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Agiliron supports 3 Costing Methods

• Standard Costing (Default)
• Average Costing
• FIFO Costing

Please contact[email protected] to make a change in the Costing Method.

• NOTE: It is best that you have the correct Stock Quantities and Unit Cost for those quantities setup in the system before switching to Average or FIFO Costing. This will ensure that the system will begin managing the costs accurately from there.

Landed Costs - For Average and FIFO Costing, Agiliron also has customizable support for Landed Costs to take into account additional costs incurred during Purchasing (e.g. Customs Duty, Freight). The user can create any number of Landed Costs components by adding Custom Fields in the Purchase Order module starting with LC_ prefix to designate them as Landed Cost fields (e.g. LC_Freight, LC_CustomsDuty).

• The Landed Cost calculations and attribution to the various line items on the PO can be based on
  • Line Item Price
  • Line Item Quantities
  • Line Item Weights
  • Line Item Volume

Example for FIFO Costing is shown below:

• Create a new product, add quantity and unit cost for the preferred stock location
• Again add another quantity and different cost for same location.
• Now when you select that product in Sales Order, it will display the first unit cost which was added