Settlement Report

The Settlement Report option is used to calculate the cost of items purchased from vendors who deliver their product on consignmentProduct that is received but not paid for until sold.. Payment for the delivery is usually calculated based on the percentage of the product received that is sold using the average selling prices, margins, and costs.

Settlement Reports are calculated on individual lot-costed items only, using the Settlement Purchase Orders.

The Settlement Report links the individual lot receipts, sales, and transfers and calculates the average selling prices for the item after sales-type cost adjustments have been deducted from the invoiced price. The add-on cost for the purchase order are added to the cost of the product to calculate the margin on each lot. These results are summarized in the Settlement Report to facilitate the calculation of purchase costs to be paid to the vendor.

A vendor copy without the sales and margin detail is available to send to the vendor as a breakdown of the purchase cost for each lot.

The cost of the item used to produce a finished-good item is calculated based on the net selling price of the finished good item sold adjusted by the yield on the transfer used to produce the finished goods item. This is done using the Apply Transfer Price function.

Security Required : Purchasing - Purchasing Reports