This article explains how Cost Submission will behave relevant to cost changes in the supply chain, and cost changes in the Cost Submission itself, including automated component cost changes from Sourcing grids
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Change of Cost in your Supply Chain
If your supplier or factory in your supply chain changes their cost, it will not affect your Cost Submission. Your Cost Submission represents a contract of service between the Vendor of Record and the Enterprise Retailer.
Change of Cost in your Cost Submission
If you want to vary your submitted price, you can do so by withdrawing your Cost Submission, editing and then resubmitting:
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⚠️ Purchase Order Risk
While your Cost Submission is in a withdrawn state, depending on your customer's configuration you may not be able to receive purchase orders on the affected product
Duty Rate Changes & Cost Submission
Enterprise retailers have the ability to define their own duty rates to be applied to their vendors' Cost Submission. If your customer changes a duty rate used in any active Cost Submission, your cost price will be adjusted automatically, and the Cost Submission will not be withdrawn.
Read more about duty here
✔️ Ensure you turn on Protect Over Cost feature to ensure your margin is not impacted by any changes to your customer's duty rate
Fixing Allowance
Enterprise retailers have the ability to agree on precious metal fixing allowances with each of their vendors. If your customer changes a fixing allowance on their Precious Metals grid that is indexed in any active Cost Submission, and Tether to Grid is activated, your cost price will be adjusted automatically, and the Cost Submission will not be withdrawn.
⚠️ Tether to Grid
Given you have manually overridden your contracted Fixing Allowance, when you turn on tether to grid for Precious Metals it will replace your manually entered value with your contracted value
✔️ Ensure you turn on Protect Over Cost feature to ensure your margin is not impacted by any changes to your customer's allowed Fixing Allowance rates.
Tether to Grid
This feature enables an Enterprise retailer and their vendors to agree to certain parts of the Bill of Materials in the Cost Submission being automatically driven by pre-agreed costs (Sourcing grids). Where this feature is enabled, cost can change as a function of Sourcing grid component cost changes and your cost price will be adjusted automatically, and the Cost Submission will not be withdrawn.
✔️ If you enable Tether to Grid feature on any part of your Bill of Materials be sure to turn on Protect Over Cost feature to ensure your margin is not impacted by any changes to your pre-agreed costs with your Enterprise retailer.