Purchase Price Cost Calculation

Purchase price cost calculation uses purchase prices from vendor-item combinations to determine line costs in Document BOMs, Construction Orders, and Service BOMs. This calculation method is configured in the Cost from (Line) field on the Construction FastTab of the Configure to Order Setup page.

If purchase price costing is enabled for the document type, the system takes costs from vendor price lists/purchase prices for the item and vendor. If no vendor price is found, it uses the default Cost from (Line) selection from setup: Unit Cost, Standard Cost, or Last Direct Cost. This method provides more accurate cost estimation based on actual vendor pricing rather than using generic item costs.

The purchase price calculation can be enabled independently for each document type:

  • Construction Orders: Enabled by default to maintain existing behavior (Constr. Line: Purchase Price if applicable)
  • Document BOMs: Controlled by the Doc. BOM: Purchase Price if applicable field
  • Service BOMs: Controlled by the Service BOM: Purchase Price if applicable field

The purchase price cost calculation follows this logic:

  1. The Vendor No. field on the line identifies which vendor's pricing to use. This vendor number is copied from the Item Card when the line is created.

  2. The system retrieves the purchase price for the item-vendor combination based on standard Business Central purchase price logic.

  3. The cost is calculated as follows:

    • If a valid purchase price exists, it is used as the Unit Cost (CC).
    • If no purchase price is found, the system uses the default cost type specified in the Cost from (Line) field (Unit Cost, Standard Cost, or Last Direct Cost).

  4. The Line Cost (CC) field is calculated as Unit Cost (CC) × Exp. Quantity.

Configuration

The configuration for purchase price cost calculation involves setting up the Configure to Order Setup page and ensuring vendor assignments on relevant lines.

Configure to Order Setup

Configure purchase price cost calculation in the Configure to Order Setup page:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Configure to Order Setup, and then choose the related link.
  2. On the Construction FastTab, set the Cost from (Line) field to Purchase Price.
  3. Turn on or off the following toggles based on your requirements:
    • Doc. BOM: Purchase Price if applicable to enable purchase price calculation for Document BOM lines.
    • Service BOM: Purchase Price if applicable to enable purchase price calculation for Service BOM lines.

Vendor Assignment

The Vendor No. field on Document BOM, Construction Order, and Service BOM lines determines which vendor's pricing is used for cost calculation:

  • All new lines inherit Vendor No. from the Item Card.
  • You can override Vendor No. per line to price with another vendor.
  • Construction Orders already behaved this way; Document BOMs and Service BOMs now follow the same pattern for consistency.

Upgrade Considerations

When upgrading from previous versions:

  • The Cost from (Line) field retains its existing value.
  • Construction Order functionality continues as before.
  • The Doc. BOM: Purchase Price if applicable toggle is turned off by default.
  • The Service BOM: Purchase Price if applicable toggle is turned off by default.
  • Existing Document BOM and Service BOM lines are not populated with vendor numbers.
  • New Document BOM and Service BOM lines will be initialized with the vendor from the Item Card.

See Also

Configure to Order Setup
General Price Handling
Construction Order
Document BOM
Service BOM


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