This article explains how the Cost Submission calculates & displays differences to pre-agreed costs in your Sourcing grids.
Sourcing grids allow an Enterprise retailer to pre-approve costs with their Vendors of Record. Cost Submission searches for these pre-approved costs every time a new Cost Submission is created or edited and will prepopulate any pre-approved values. As the Vendor of Record can also override any pre-populated values it is important for the Retailer to be able to easily understand any difference to pre-approved costs. This is also visible to the Vendor of record prior to submission.
Pre-Approved & Difference
If every component within your Bill of Materials (BoM) tier row can successfully index against your customer's Sourcing grid then you will see Pre-Agreed cost populate automatically - as shown below for Precious Metals
The difference % with the red arrow indicates the total precious metal cost is 1.9% over the pre-approved cost.
If you scroll down to the Difference summary section for the entire piece, we can see how all the BoM tiers combine to provide a summary of difference against agreed costs for the entire piece.
In the example displayed above, the only BoM tier that indexes is the precious metals tier (1.9% over pre-approved costs) so in the summary section we can understand the following:
- 77.16% of the total cost can be indexed to pre-approved costs
- this represents $111.54 in absolute value terms
- and this is $2.12 (1.9%) over the Pre-Approved indexable costs
Warning Icons Explained
There are two types of warnings that can display in the Pre-Approved column:
- The component cannot index against a Sourcing grid
- The component can index but no approved price is present in the grid yet
1. Cannot Index Warning
If one or more components in a BoM tier cannot index you will see this warning:
In this example, the warning is displayed on Labour > Setting which means that at least one stone in the stone table cannot be indexed against the Sourcing Grid. Click on the blue Setting link to auto navigate to the stone table to see which stone(s) is not indexed:
The vendor has two options:
- Proceed with Cost Submission knowing the failure to index will be highlighted to the customer Sourcing team
OR
- Use the Request New feature in the relevant Sourcing grid to request the missing row to be added to the relevant grid
2. Can Index but no Price Returned Warning
If one or more components in a BoM tier can index but do not yet have an approved price applied by your customer you will see this warning:
In this example, the warning is displayed on Raw Materials > Stone which means that at least one Stone in the Stone table can be indexed against the Sourcing Grid, however does not yet return an Approved Cost. Click on the blue Stone link to auto navigate to the stone table to see which stone(s) is not indexed:
Warning Icon in the Summary Difference
If none of the Bill of Materials can successfully index against the grid then you will see a warning message indicating why the summary Difference section is blank:
It is unlikely your customer will approve any cost submission if it is submitted in this state.
Relevant Documentation