I want to alert you all to something we just discovered about Vantage
6.1 and ask advice on how to better handle the situation.
When we quote a part with a subcontract operation we always enter a
unit price and a minimum lot charge. Lets say the unit price is .10
and the lot charge is $30. In prior versions, the .10 would show up
as the price on the job and in PO suggestions no matter how many
parts the job was for. This made it necessary for Purchasing to keep
an eye out for small qty jobs that would not meet the minimum lot
charge. They would then set the unit price to 0 and enter a
miscellaneous charge for $30.
In 6.1, if the production qty is small enough that the unit price
would not meet the minimum, Vantage calculates a new unit price, in
this example say the production qty was 100. 100*.10=$10 which is
less than the minimum so Vantage takes the lot charge divided by the
production qty to come up with a new unit price. $30/100=.30. This
unit price is now on the job and in PO suggestions. One of the
problems with this is that we rarely ship exactly the production qty
to the vendor. If we ship 120 pieces in this example we should still
only pay a $30 lot charge, but using the Vantage calculated unit
price we'd pay $36. So using the unit price won't work for us, we
need to change it to a lot charge.
With the inflated unit prices, it won't be as easy for Purchasing to
catch and change back to a miscellaneous charge.
Support suggesting using price breaks, which we haven't really
explored. From what I've seen, it won't really help us with the lot
charge situation. We basically have 1 unit price and a minumum so I
don't know that price lists are the answer either.
Any ideas?
Thanks,
Brian Stenglein
Clow Stamping Co.
6.1 and ask advice on how to better handle the situation.
When we quote a part with a subcontract operation we always enter a
unit price and a minimum lot charge. Lets say the unit price is .10
and the lot charge is $30. In prior versions, the .10 would show up
as the price on the job and in PO suggestions no matter how many
parts the job was for. This made it necessary for Purchasing to keep
an eye out for small qty jobs that would not meet the minimum lot
charge. They would then set the unit price to 0 and enter a
miscellaneous charge for $30.
In 6.1, if the production qty is small enough that the unit price
would not meet the minimum, Vantage calculates a new unit price, in
this example say the production qty was 100. 100*.10=$10 which is
less than the minimum so Vantage takes the lot charge divided by the
production qty to come up with a new unit price. $30/100=.30. This
unit price is now on the job and in PO suggestions. One of the
problems with this is that we rarely ship exactly the production qty
to the vendor. If we ship 120 pieces in this example we should still
only pay a $30 lot charge, but using the Vantage calculated unit
price we'd pay $36. So using the unit price won't work for us, we
need to change it to a lot charge.
With the inflated unit prices, it won't be as easy for Purchasing to
catch and change back to a miscellaneous charge.
Support suggesting using price breaks, which we haven't really
explored. From what I've seen, it won't really help us with the lot
charge situation. We basically have 1 unit price and a minumum so I
don't know that price lists are the answer either.
Any ideas?
Thanks,
Brian Stenglein
Clow Stamping Co.