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Old 9th August 2004, 21:31
frank holland frank holland is offline
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Baan: BaanIVc4 - DB: Oracle11g - OS: Windows2008
Hi Paul,

Here some more info on the business background of this problem.

The surcharge represents the usual overhead costs.

The customer does not want the surcharge to be part of a purchase items' cost price, because then:
- the inventory value of all purchase items would be higher than before
- the costs of goods sold (COGS) of these items would be higher than before.
The latter is important when purchase items are directly sold and not built-in in manufactured items. For such trading goods the material surcharge would be too high, since the overhead costs of trading good sales are lower than for the more complex manufactured parts.

I hope this helps !

Cheers,
Frank
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