DBD: Inventory - Salesperson Cost vs. Standard Cost

• System Rule: Within DemandBridge, "Salesperson Cost" and "Standard Cost" are used interchangeably. The naming convention simply changes depending on which screen you are viewing:
  • Salesperson Cost: Located on the <b>IC0</b>  Inventory Master record.
  • Standard Cost: Located on the <b>ICF</b>  Inventory Lot record.

Section 1: GL Cost Adjustments via System Parameters

Depending on your operational workflows, you can leverage these cost fields to trigger automated Gross Profit variance entries during the customer invoicing process.

1. Lot-Level Adjustments (Stock Items)

• Path: Accounts Receivable > Setup > System > System Setup > Parameters
• Logic: When this parameter is activated, the invoicing utility checks the specific inventory lot record for a populated Standard Cost value. If present, the system calculates the variance between the lot's standard cost and its true accounting receipt cost, automatically posting a GP Adjustment.

💡 Practical Example: An inventory item is received into stock at a true cost of $10.00, but is assigned a $11.50 Standard Cost on its lot record. If an order releases 20 units of this lot, the invoicing cycle will automatically calculate a $30.00 Gross Profit adjustment ($1.50 variance $\times$ 20 units) to balance the margin.

2. Direct Ship Adjustments (Drop Ships)

• Path: Order Processing > Setup > System > System Setup > Parameters
• Logic: When this parameter is activated, any Direct Ship sales orders processed for standard stock items will generate an automated GP adjustment during invoicing. This variance calculation pulls directly from the Salesperson Cost field configured on the item's core inventory master record.

Section 2: Reporting Utility Features

1. Valued Inventory Report

When running your standard valuation assets, you have the option to toggle the calculations to report value metrics in terms of Standard Cost instead of the actual, true accounting acquisition cost. This is helpful for management forecasting and simplified margin analysis.

2. Salesperson Cost Change Report

This automated administrative utility allows you to execute mass updates to the Salesperson Cost field on your inventory master records simultaneously.

• Calculation Methods: You can globally multiply or divide the current salesperson cost, or baseline the update against the current Average Cost logged on your specific item location records.
• Variable Modifiers: The utility allows you to explicitly input the specific percentage factor or mathematical divisor required for the adjustment batch.