Creating Out Cost Codes
Using out cost allows dealers to create a burden cost on items by adding a certain percentage to their actual cost, thus enabling them to protect their margin. You want to make sure that all costs for selling the item are completely covered. Using out cost ensures that you are not using your percent of the profit to cover unforeseen costs. For example, suppose the actual cost for an item is $100 and the burden cost or out cost for that item is $110. If the sales person sells the item for $200, the commission is calculated based on the margin between sell price and the out cost rather than the margin between the sell price and the actual cost.
Out cost groups can be overridden by out cost codes. For more information, see the Creating Out Cost Groups topic. An out cost code is an out cost that is assigned to individual employees for a particular period of time. For example, if the actual cost of an item is $100, you can set two out cost codes, one for $110 and one for $115. Then, you could assign the $110 out cost code to Bob for a specified period of time and the $115 out cost code to Mary for a specified period of time. Once the specified period of time is up, the out cost rate will return back to the rate specified by the out cost group. For more information on assigning out cost codes to employees, see the Creating Employee Contractors topic.
While the assignment of out cost groups can be manually handled in the sales reps employee file, it is better managed using the Out Cost Configurator, a tool to be offered as part of the Digital Quote Manager.
Getting to the TransactionGetting to the Transaction
From the Tools menu, select Lists and Codes to open the Lists and Codes window.
In the Select a List or Code type field, use the drop-down menu to select Out Cost Codes.
Click [New] to open the New Out Cost Code window.
Basic InformationBasic Information
Complete the following fields as appropriate:
Out Cost Code: Name of the out cost code.
Description: Brief description of the out cost code.
Out cost group: Use the Lookup to select the out cost group that the code is assigned to, or click the down arrow to create a new group.
Rate: The percentage you would like to add to the actual cost of items you will assign to this out cost group.
Completing the TransactionCompleting the Transaction
Click [OK] to save the out cost code.
Non-supported ReleaseNon-supported Release
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