The MISys 'Additional Cost' feature allows you to establish suppliers of packaging, shipping, brokerage services which may apply to a Purchase Order. It can be used for many other types of costs like freight/shipping, cranage/handling, import duties, excise taxes, and miscellaneous fees to establish accurate landed costs. The Additional Costs feature can be used for almost any expense that is associated with, or should be incorporated into, the actual costs of other items. The allocation may be made manually, or automatically using one of the available proration methods. Before entering Additional Costs within a Purchase Order there are several tasks you must accomplish:
- Turn-on the Calculate Additional Costs option under the Preferences Tab within MISys Company Options. (Contact your MISys Administrator for more information, or to enable this option.)
- Create any/all Suppliers within your Master Files that will be providing ‘Additional Costs’
- Create ‘Additional Costs’ from the Purchasing Menu for each ‘Additional Cost’ you typically might record (Freight, Shipping, Import Duties, etc.)
- If you are using the ‘Prorate by Weight’ Option make sure you first establish the estimated with for each Item in your Master Files
- Create a ‘Distribution Account’, this is a clearing account MISys will use during the cost proration/distribution process. (You will need to create this account in both your Accounting and MISys software.)
Turn-on Calculate Additional Costs
The above figure shows you how the MISys Administrator can turn-on the Calculate Additional Costs feature which can be found under Accounting Options within MISys.
Set-up Suppliers for Additional Costs
You should set-up any Suppliers that will be providing ‘Additional Costs’ that maybe associated with your regular ‘stock’ items. An example of such a supplier follows.
Of course your supplier(s) records may contain additional details not shown in this example.
Configure Additional Costs
From the MISys Purchasing Menu, create ‘Additional Costs’ you typically might record (Freight, Shipping, Import Duties, Special Handling, etc.).
The Additional Cost field is the alphanumeric code to identify this additional cost. The Description should describe the Additional Cost as you would like it to appear on forms.
The Proration Method defines how an Additional Cost is distributed across the details of a Purchase Order. There are several Proration Methods available in MISys Manufacturing. Click on the selection box and choose: No Proration, Prorate by Quantity, Prorate by Extended Price, Prorate by Weight and Prorate Manually.
Supplier No. represents the Supplier from you will be paying for this Additional Cost. You may leave the Supplier No. field blank. If you do, the Additional Cost can be associated with any Supplier when you apply it to a Purchaser Order.
Entering Additional Costs for a Purchase Order
You do NOT enter a Purchaser Order to a Supplier of Additional Costs, rather you enter the associated costs by the Supplier as part of the original Purchase Order for your Raw Materials (or other items). The Additional Costs tab of a Purchase Order allows you to apply the additional costs which may apply to an open Purchase Order.
The upper grid captures and displays the Additional Costs you enter for the Purchase Order. The lower grid records and displays the proration of the Additional Costs across the received items on the Purchase Order either using a selected proration method, or the manual proration option.
Enter and/or confirm the appropriate Additional Cost information by selecting an Additional Cost from the list of costs you previously configured. Accept or enter the Supplier, Enter the Amount and Date for the Additional Costs. Confirm or Enter the Proration Method, and then Save the Addtiional Cost upon completion.
Proration of Additional Costs
The Proration button allows you to actually distribute the Additional Costs to the original items on your Purchase Order based upon the selected Proration method.
Once you have prorated the additional costs, the lower grid of the Additional Cost tab will display the proration amounts for each item.
Invoice Additional Costs
The Invoice button initiates the steps to invoice the Additional Costs from a selected line on the Additional Cost tab to your Accounting Software.
This invoice feature is only available if you have an Accounting Integration that supports Invoicing in the company option. For those not familiar with MISys don't be confused by the term 'invoice', in MISys an Invoice is a transmittal of Supplier billing information to your accounting software. For example, if you are using QuickBooks, this Invoice feature will create a 'Vendor Bill' in QuickBooks for the Supplier (QuickBooks Vendor) providing the Additional Cost.
Disclosure: MISys Manufacturing is a product and registered trademark of Manufacturing Information Systems, Inc.; 2174 Maxham Meadow Way # 2G, Woodstock, VT 05091. Manufacturing Information Systems, Inc. (dba MISys, Inc.) was formed in 1977. MISys maintains a close developer relationship with Intuit (the maker of QuickBooks) and Sage Software (the maker of Sage 50 US (formerly Peachtree), Sage 50 Canadian (formerly Simply Accounting), Sage 300 ERP (formerly Accpac), and Intacct accounting.