Task Materials from Purchase Order Example

Learn how task materials work when transferred from a PO in AroFlo Office

Updated on June 3rd, 2024

Inventory material price settings can be based on a fixed Cost or a Calculated Cost.

 

In this example, we've set our Task pricing to use the Average Cost plus a 30% markup.

 

Suppose you're out on a job and you raise a purchase order for this item; the cost that will show on the purchase order is $309.4444. However, the supplier has raised their price and their invoice shows $320.00 for the item. In this case, AroFlo will do two things:

  • apply the new price of $320.00 + 30% ($416.00) to the task
  • update the Calculated Cost (in this case, the average cost) on the inventory item.

The Task Sell Ex price displayed on our Purchase Order is determined by adding our 30% markup to the new material cost.

 

Back on the task, the actual material cost from our Purchase Order is used, then our 30% markup is added to calculate the Sell Ex price:

In our Inventory, the material's Calculated Average Cost has been recalculated and updated.


If this item is added directly to a task, the updated Average Cost will be used as the basis for any costing calculations.