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Current Process

  • FIFO Costing Method

  • Inventory costs are manually adjusted for currency conversion rates and a “standard” markup for shipping costs (includes duties, insurance, etc.). This is done every time they make a purchase or receive a price list

  • Bulk purchase discounts; discounts often appear on a separate line and aren’t always automatically factored into the cost calculations within the system

  • For truckload purchases, an average shipping cost of 5–10% is added manually to each item. This shipping cost is often recorded separately and is not part of the vendor’s invoice, which requires an additional step to account for it

  • Landed cost discrepancy of about 10% between the cost recorded in the system and the actual landed cost at the end of the fiscal year, due to applying a standard markup to cover shipping costs rather than calculating it on a per-item or per-project basis

Requirements

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