Manage account sale costs
Costs are deducted from the revenue reported to vendors. For more information, see Understand costs calculation.
The functionality for Costs (Deducted Revenue) and Costs is identical and is described below:
On the Account Sale page, the total sum of the specific cost type is visible under the green-highlighted headline for Costs. By selecting this section, you can expand to view the lower levels to understand how the total cost amount is distributed across different business processes, including:
- Purchase: This shows the total cost of item charges from the cost template that is applied to purchase receipt lines.
- Transfer: This shows the total cost of item charges from the cost template that is applied to transfer receipt lines.
- Sales: This shows the total cost of item charges from the cost template that is applied to sales shipment lines.
- Uncategorized: This shows the total cost of item charges from the cost template applied to the combination of purchase, sales and/or transfer lines. It also includes information on item charges that are not specifically applied but are part of the cost template.
Expanding further to view individual item charge codes within each business process is possible.
The Cost headline on the Account Sale page, highlighted in green, represents the overall total costs from the underlying sales sections. You can select the values in either the Cost (deducted revenue) or Cost section to gain detailed insights into calculating these costs. This action opens the Account Sale Cost lines page. This page provides comprehensive cost information, allowing you to analyze the specific item charge codes and their allocation within different business processes.
The following fields are available on the Account Sale Cost page:
| Field | Description |
|---|---|
| Item Charge Code | Specifies the code of the item charge no. The code originates from the cost template line on which this account sale cost line is based. |
| Item Charge Description | Specifies the description of the item charge number |
| Deduction Method | Specifies the method that is used to determine where to populate the cost in the Account Sale page. The options are: The selected option originates from the cost template line on which this account sale cost line is based. |
| Cost application Method | Specifies which value should be used to fill the Cost Amount (Account Sale) field. The selected option originates from the cost template line on which this account sale cost line is based. |
| Cost Amount (Expected) | Specifies the sum of all account sale detail lines of Type as a Cost and Subtype as an Expected. It represents the total amount of cost that was expected for this cost line. |
| Cost Amount (Actual) | Specifies the sum of all account sale detail lines of Type as a Cost and Subtype as an Actual. |
| Cost Amount (Account Sale) | Specifies the value for this cost that is to be reported to the vendor on the account sale. Based on the Cost Application Method field, the value is used. The selected option originates from the cost template line on which this account sale cost line is based. |
| Item Ledger Entry Type | Specifies the type of item ledger entry the account sale cost line applies to. The available options are: Purchase, Transfer, Sales, or Blank (meaning uncategorized). If all account sale cost detail lines under a specific account sale cost line are of the same item ledger entry type, the value is inherited by the account sale cost line. If it is blank or various item ledger entry types exist in the account sale detail lines, the value on the account sale cost line is set to blank and is uncategorized on the Account Sale page. |
| Modified | Specifies whether the Cost Amount (account Sale), as suggested by the settlement calculation, was changed. |
On the Account Sale page, you can select the values for individual item charges to view the Account Sale Detail Lines. These details are used to calculate the summarized information shown on the account sale cost line.
Costs linked to sales return orders
Costs associated with sales return transactions, which are recorded in document lines of the item type for sales return orders or sales credit memo lines, are included as account sale detail lines categorized as ‘costs,’ similar to costs linked to sales transactions. However, like all other costs, they are populated into the account sale as account sale cost lines only if the specific item charge or trade plan code is present in the selected cost template during the account sale calculation.
The key distinction lies in the sign with which these costs are added:
- Costs related to sales transactions are added with a positive sign, indicating that they reduce the purchase value to be paid to the vendor within the account sale calculation on the account sale page.
- Costs linked to sales return transactions are added with a negative sign, indicating that they increase the purchase value to be paid to the vendor within the account sale calculation on the account sale page.
The underlying assumption here is that all costs initially incurred by the company to deliver the product to the customer should be reversed if the customer decides to return the product.