Sourced Goods is a product for pricing items purchased from a vendor and resold. It is stored in Products & Modifiers, in the Digital / Vinyl and Electrical Fabrication categories. The Sales Form takes an item name, a long description, a quantity, units, a cost, and a markup. Pricing is set to Custom, and Calculate uses that cost and markup. The same Sales Form is used when Sourced Goods is added on an Estimate or Order.
Table of Contents
- Where to Find Sourced Goods
- What Sourced Goods Includes
- Product Settings
- Linked Components
- Enter a Sourced Item
- Review the Price
- Add Sourced Goods to an Estimate
- Frequently Asked Questions
- Related Articles
Where to Find Sourced Goods
Navigate to System Settings / Components / Products & Modifiers.
1. Open Sourced Goods.
What Sourced Goods Includes
a. The name is Sourced Goods. The categories are Digital / Vinyl and Electrical Fabrication. The name on Customer documents is Misc. The description is Sourced Items for Resale (We recommend cloning this assembly and naming it for the outsourced item. This will help with reporting to understand what your top selling outsourced items are.).
b. Pricing is the method Calculate uses. On this product the card shows Custom and Custom Formula.
- For the fields on this card, see Product Details.
- For how each method calculates, see Understanding Market-Based vs. Cost-Plus Pricing, Cost Based Pricing, and Market Based Pricing.
- For tables, minimums, and fees, see Markup and Margin Pricing Tables and Product Minimums and Fees.
c. Product Settings holds lead time, order-entry visibility, the default item name, and the markup. The card shows 8 settings.
d. Linked Components shows 1 linked component. Cost is entered on the Sales Form.
e. Accounting & Tax assigns income, expense, and tax. Income uses Single Income Allocation and account 4002 • Vended Sales. Expense uses Single Expense Allocation and account 5000 • COGS. The taxability code is Goods.
- For the fields on this card, see Product Details.
- Taxability Codes are managed at System Settings / Accounting / Taxability Codes. See Taxability Codes.
Product Settings
Product Settings holds the defaults that follow the product onto an Estimate or Order.
a. Hide in Order Entry, when on, keeps the product out of the Estimate and Order list without deleting it. On this product it is off, so Sourced Goods can be added to a line.
b. Lead Time (Days) is the number of days an Order uses when calculating a production due date. On this product it is 0.
c. Default Line Item Category is the category that fills when the product is added. On this product it is No default category.
d. Default Workflow is an optional starting workflow. On this product it is No default workflow.
e. Defaults holds Item Name. On this product Item Name is blank, so the name is entered on the Sales Form.
f. Calculated On is Markup.
g. Default Percent (%) is 100%.
h. Include Calculation Option on Pricing Form is off.
i. Include Standard Options (DCG) is off.
Note: The settings form shows Std Version 2.5.
- For every setting on the card, see Product Details.
Linked Components
Linked Components are the materials, labor, machines, and modifiers the product is allowed to use.
a. The product links the Sourced Goods Costs material. Type the vendor cost in Cost Each $ on the Sales Form.
- For how to link or unlink a component, see Linked Components.
- For how a modifier differs from a product, see Products vs. Modifiers.
Enter a Sourced Item
Use Preview on the product to try the Sales Form before it is added to an Estimate or Order. Layout is Standard.
1. Set Quantity.
2. Enter Item Name.
3. Set Qty Each (ea).
4. Review Units.
5. Enter Cost Each $.
6. Review % Markup.
7. Enter Long Description.
Note: Total Quantity is Qty Each (ea) times Quantity. Total Cost $ is Cost Each $ times Total Quantity. In this example, Total Cost $ is $48.00, Price Each $ is $96.00, Total Price $ is $96.00, and Margin shows 50%. % Markup is 100%.
Review the Price
1. Click Calculate. After the price runs, the button reads Recalculate.
a. Pricing Breakdown shows Material $48.00, Total Cost $48.00, Markup +$24.00, and Unit Price $96.00 for 1 unit, with a total of $96.00. The bar shows Cost, Markup, and Other.
Add Sourced Goods to an Estimate
Navigate to Sales / Estimates.
1. Open the Estimate.
2. Click Line Item.
3. On the Products tab, search Sourced Goods and select the row named Sourced Goods.
4. Choose a Line Item Category.
5. Click Next.
6. Enter Item Name.
7. Enter Long Description.
8. Enter Cost Each $.
9. Review % Markup. T
10. Click Save Changes.
Note: Units is Each. In this example, Total Cost $ is $48.00, Price Each $ is $96.00, and Total Price $ is $96.00. Linked Modifiers can add a modifier on the line.
Frequently Asked Questions
1. What is the difference between Sourced Goods and Additional Sourced Goods?
Answer: Sourced Goods is the product. Additional Sourced Goods is a modifier. Search can also list (Old) Sourced Goods and Work Sheet Sourced Goods. Open the row named Sourced Goods whose Type is Product.
2. Does % Markup have to stay at 100%?
Answer: No. 100% is the markup saved on this product. Change % Markup on the Sales Form, or change Default Percent (%) in Product Settings. Calculate uses the markup on the form.
3. Where is the vendor cost entered?
Answer: The product links the Sourced Goods Costs material. Type the vendor cost in Cost Each $.
Related Articles
Adding Products During Estimate or Order Entry