To apply transfer prices
This function allows you to apply or use the selling price of the item produced from the purchase item via a transfer. The yield taken on the transfer can then be applied to calculate what the selling price would have been on the item purchased.
For example, suppose you bought some individually lotted swordfish from a vendor on an individually-lotted purchase order. From the lot or lots of swordfish, 100 pounds were used to produce 65 pounds of swordfish loins, which were then sold for $8.00 per pound. In order to properly settle with the vendor, the selling price of the swordfish and any production yields that occurred need to be established. "Apply Transfer Prices" allows you to do just that. By using the selling price of the loins that came from swordfish on the transfer and applying the transfer yield, the selling price of the swordfish can be calculated. Using this example, the selling price of the swordfish would be $5.20, based on the $8.00 selling price of the loins x the 65% yield on the transfer.
To run "Apply Transfer Prices"
1. After selecting APPLY Transfer Prices, enter in the appropriate date of the transfers to use to apply or calculate the selling price of the purchase item based on the selling price and transfer yield of the item sold.
2. Command options will appear allowing you to print or choose from a set of other print options.
The following fields will print on the Transfer Pricing Report:
- From/To Item – The item group ID and item name that is being transferred from (this is the purchased item) and the item group ID and item name that the purchased item was transferred to (this is the sold item).
- Order – The sales order reference number
- Ord Date – The order date of the sales order
- Ship Date – The date the sales order was shipped
- Inv Date – The invoice date of the sales order
- Quantity – The quantity shipped on the sales order
- Price – The net product selling price of the sales order
- Extended – The total dollar amount of the item sold on the sales order (quantity x price)
- Trf Date – The transfer date
- Trf Ref – The transfer reference number
- Trf Lot – The lot the transfer was from
- Applied Price – The price applied to the purchased item (selling price x yield)
- %Yield – The yield percentage on the transfer.
The following is an example of a Transfers Not Priced Report, which is printed after the Transfer Pricing Report output:
- From Item – The item group ID and item name of the item that was transferred
- To Item – The item group ID and item name of the item was transferred to
- To Item Onhand – The current on-hand balance of the "to" item
- Trf Date – The date of the transfer
- Trf Ref – The transfer number
- From Weight – The total weight of the "from" item
- To Weight – The total weight transferred into the "to" item
- Yield % – The yield percentage for the transfer.