In ProdSys, calculating an article involves a step-by-step process to define its cost and value based on various parameters and formulas. This guide will walk you through how to open an article, edit its calculation, and understand the different formulas that can be used to calculate the cost of an article.
Step-by-Step Guide to Calculating an Article
Step 1: Open the Article
Log in to ProdSys: Start by logging into your ProdSys account with your credentials.
Navigate to the Articles Section: From the side menu, select the "Article / Article" section to display all available articles.
https://app.prodsys.com/#/articles/articlesSelect the Article to be Calculated: Choose the specific article you want to calculate from the list by clicking on its name or number.
Open the Article Details: Click on the article to open its detailed view, where you can see all the relevant information, including pricing, quantities, and any pre-existing calculations.
Step 2: Edit the Calculation
Open the Calculation Tab on the left side: In the article details view, find the section dedicated to calculations. This is where you will input or adjust the values for cost estimation.
Add a new calculation: Press "+" New calculation on top left
Edit a existing calculation: Double click or open action menu "three dots" and select Edit
Choose station task: This will connect the calculation to the station list. If this is a material calculation we would typical have a station called "Material cost" If it is a Hour calculation we would select the station this calculation is bound to.
Choose the Formula to Use: Depending on the nature of the article, choose the appropriate formula to calculate its cost. Examples of formulas that can be used include:
Quantity x Price: For simple items where cost is calculated based on the number of units and unit price.
Quantity x Price x Length: For items where the cost depends on the length, such as materials sold by the meter.
Quantity x Price x Length x Width: For items where both length and width affect the cost, like fabric or flooring materials.
Quantity x Hours x Rate: For service-based articles where cost is determined by the time spent and the hourly rate.
Enter or Adjust Values: Input or modify the values for each parameter in the chosen formula (e.g., quantity, price, length, width, hours, rate) to reflect the correct calculation for the article.
Apply Currency Options: Define the unit price for purchasing in different currencies if applicable. ProdSys allows you to enter purchase prices in various currencies, which are then converted based on the latest exchange rates.
Set the Unit Price for Inventory Value: Specify the unit price that reflects the value of the article in inventory.
Add Discounts and Additional Charges:
Discount %: Enter any discount percentage that applies to the article.
Additional %: Add any additional percentage charges, such as handling or transportation fees.
Update Currency Exchange Rates: ProdSys can automatically update currency exchange rates, ensuring that your calculations reflect the most current market conditions.
Enter Profit Margins:
Gross Margin (GM%): Define the gross margin percentage to calculate profitability.
Mark-Up (MU%): Input the markup percentage to determine the added value over the base cost.
Sales price: You can modify the sales price manually, this will recalculate the GM%
Understanding the Different Formulas
ProdSys supports multiple formulas for calculating the cost of an article, allowing for flexibility based on different business needs. Some common formulas used in article calculations include:
Quantity x Price: Basic calculation for products sold per unit.
Quantity x Price x Length: Used for products where cost is determined by length (e.g., cables, textiles).
Quantity x Price x Length x Width: Suitable for products where both length and width are relevant to cost (e.g., fabric, sheets).
Quantity x Hours x Rate: Typically used for services where cost is based on time and hourly rate (e.g., consulting, repair services).
Understanding sales price
The calculated sales price is based on the formula and the GM%. This ensure that if the purchase price goes up the calculation will increase the Sales price.
This guarantees that we always calculate with the last known price on the Article.
In a sale using the Article on and Order line level it will suggest the calculated sales price always, but this can be modified on the order line.
Finalizing the Calculation
Once you have entered and adjusted all relevant values:
Review All Inputs: Check the details to ensure accuracy in quantities, prices, currency rates, discounts, and margins.
Save the Changes: Save the updated calculation to apply all changes.
Conclusion
By following these steps, you can efficiently calculate the cost of an article in ProdSys using various formulas and parameters. This flexibility allows you to accurately determine costs, set appropriate prices, and maintain control over inventory and profitability.