Table of Contents

Purchase Calculate Elements

Purchase Calculate Elements can be used to increase the cost amount with additional costs which are not included in the purchase document itself. This immediately creates a realistic unit cost for the purchased items, which ensures that the correct margin is achieved in sales.

To set up Purchase Calculate Element Types

  1. Choose the Search icon, enter Purchase Calculate Element Types, and then choose the related link.
  2. On the Purchase Calculate Element Types page, choose the New action to create a new element type.
  3. In the Purchase Calculate Element Types page, fill the required fields, such as: Code, Description, Element Type, Cost Account No., Element Charge Type and Automatically Recalculate.

Element Type

Option Definition
G/L Account The costs are posted to a specific G/L Account.
Charge (Item) The costs are posted to the value entries. This option is used when a Purchase Invoice is received for these costs.

Cost Account No.

Depending on which Type is chosen, it is possible to set up on which General Ledger Account or on which Charge (Item) the Purchase Calculate Element Type is posted.

Element Charge Type

The Element Charge Type specifies how the costs are distributed among the items in the Purchase Order.

Option Definition
Amount per PE The value entered is added to the direct unit cost.
% Value PE The value entered is added as a % to the direct unit cost. The amount is included in the unit cost as indirect costs.
Volume per PE The value entered is added to the direct unit cost per volume per PE.
Gross Weight PE The entered value is added to the direct unit cost according to the calculation total gross weight * value / total quantity.
Net Weight PE The entered value is added to the direct unit cost according to the calculation total net weight * value / total quantity.
Container Determine a total amount which will be divided over the number of containers. Container costs are distributed over the volume of the receipt lines.

Automatically Recalculate

The Automatically Recalculate field determines whether the number of containers is automatically recalculated if the Element Charge Type is container. If Automatically Recalculate is active, the No. of Containers is filled based on the number of unique containers in the Purchase Order, Purchase Invoice and Warehouse Receipt. For the Blanket Purchase Order this must be done manually.

Shipment Method Purchase Calculate Default Elements

The Purchase Calculate Default Elements can be set up per Shipment Method Code. These standard Purchase Calculate Elements are automatically added in the Purchase Order, Purchase Invoice, Warehouse Receipt and Blanket Purchase Order when selecting this Shipment Method Code.

  1. Choose the Search icon, enter Shipment Methods and then choose the related link.
  2. Select Home and choose the Purchase Element action.
  3. The Purchase Calculate Default Elements page will open. Choose the New action to add default elements.
  4. Fill in the necessary fields such as: Element Apply-to, Vendor Name, Vendor No., Currency Code, Start Date, End Date, Value, Active and Automatically Recalculate.

Blanket Purchase Order, Purchase Order & Warehouse Receipt

Blanket Purchase Order

  1. In the Blanket Purchase Order, the Purchase Calculate Default Elements are added based on the selected Shipment Method and Vendor.
  2. The Purchase Calculation Elements can be adjusted manually. Select Prepare and access the Purchase Calculate Elements to adjust this specifically.
  3. Insert the desired Element Code.
  4. If the Element Type Assignment is Container, it must be specified over how many containers the total value should be divided. This is not mandatory for a Blanket Purchase Order or Purchase Order, but it must be filled when posting the Warehouse Receipt.
  5. If the Element Type Assignment is Charge (Item), a Vendor must be selected. This is not mandatory for a Blanket Purchase Order or Purchase Order, but it must be filled when posting the Warehouse Receipt. A Purchase Order with the Charge (Item) is then automatically created when the receipt is posted.

Purchase Order

  1. The Purchase Calculate Elements are copied from the Blanket Purchase Order when creating the Purchase Order.
  2. When a Purchase Order is not created out of a Blanket Purchase Order, the Purchase Calculate Elements are added manually or based on the selected Shipment Method.
  3. If the Blanket Purchase Order consists of multiple receipts, do not forget to recalculate the total value of the Purchase Calculate Elements. Select Prepare and access the Purchase Calculate Elements. Choose the Recalculate Total Value action to recalculate.

Warehouse Receipt

  1. The Purchase Calculate Elements are copied from the Purchase Order when the Warehouse Receipt is created.
  2. At the moment that the warehouse receipt is posted, a check on the Purchase Calculate Elements will take place.

Invoicing of the Purchase Calculate Elements

Invoice Purchase Calculate Elements G/L Account

  • If a Purchase Invoice is received from the Purchase Calculated Elements, the costs must be posted on the same G/L Account as the Purchase Calculate Elements are posted.
  • The Purchase Invoice is not linked to the Posted Purchase Receipt of the material. Otherwise the costs are applied twice.

Invoice Purchase Calculate Elements Charge (Item)

  • When posting the Warehouse Receipt of the material and associated Purchase Calculate Elements, an additional Purchase Order is posted for these costs. In this way, the Purchase Invoice of the Purchase Calculate Elements can be linked to this Posted Purchase Receipt.
  • The Purchase Invoice for the material can be linked to the Posted Purchase Receipt of the materials. The Purchase Invoice of the Purchase Calculate Elements can be linked to the additional created Purchase Order.