How to: Specify Item Cost Conversion Factors

You can specify cost conversion factors between items to impact sales price calculations. If an item's sales price is calculated from a cost calculation method with an assigned cost calculation item, the program will apply the cost conversion factor that exists between the cost calculation item and the sales item to the calculation.

Cost conversion factors are used solely for pricing calculations, and do not necessarily reflect the physical relationship between two items.

To specify item cost conversion factors

1. In the Search box, enter Cost Calculation Methods, and then choose the related link.
2. Open a cost calculation method card with an assigned cost calculation item.
3. On the Navigate tab, in the Cost Calc. group, choose Cost Conversion Factors. The Item Cost Conversion Factors window appears.

The Cost Calc. Item No. field is automatically filled in with the cost calculation item from the selected cost calculation method. The cost conversions you define for the items in the window are all in relation to this item.

4. Enter values in the Costing Qty. and Equivalent Pricing Qty. fields to specify the quantity of the cost calculation item that the item on the line represents.

You can define a single cost conversion factor between any two items. You can not define different cost conversions between the same items for separate cost calculation methods.