Customer Case:
The customer wants to understand how ON!Track calculates costs for quantity items and what factors influence the calculated cost. They may also notice multiple charge entries for the same quantity item when stock levels change and want to understand why this happens.
How does ON!Track work?
Quantity item costing works similarly to asset costing, but the calculation is based on the stock quantity available at a location.
For quantity items, customers can configure a Cost Setting at the quantity item level. The available options are:
- None – No cost calculation is performed for the quantity item.
- Daily – ON!Track calculates a daily cost based on the stock quantity available at the location.
When the Daily cost setting is used, the quantity item cost is calculated using the following formula:
Quantity Item Cost = Workdays on Site × Daily Rate × Stock Quantity
The key factors used in the calculation are:
- Workdays on Site
Calculated using the location's Cost Settings, including working days, business hours, weekends, and holidays. - Daily Rate
The rate configured for the quantity item. - Stock Quantity
The quantity of stock available at the location during the charge period.
How stock quantity changes are handled
A quantity item's stock level can change over time as additional stock is received or consumed.
When the stock quantity changes, ON!Track does not update the existing charge entry. Instead, ON!Track closes the current charge period and creates a new charge entry with the updated stock quantity.
This approach ensures that the cost calculation accurately reflects the stock quantity that was present during each period.
Example
Assume the following:
- Daily Rate = $1 per unit
- Initial Stock Quantity = 500 units
On 1 January, the location receives 500 units.
ON!Track creates a charge entry for:
- Stock Quantity: 500
- Date Arrived: 1 January
Later, on 15 January, another 300 units are added.
Instead of updating the existing entry, ON!Track:
- Closes the first charge entry with a Date Left of 15 January.
- Creates a new charge entry starting on 15 January with a stock quantity of 800 units.
As a result, two separate charge entries exist:
| Period | Stock Quantity |
|---|---|
| 1 Jan - 15 Jan | 500 |
| 15 Jan onwards | 800 |
This ensures that ON!Track calculates costs correctly for each stock quantity during the period it was available at the location.
In summary, quantity item costing is based on Workdays on Site, Daily Rate, and Stock Quantity, and ON!Track creates new charge entries whenever the stock quantity changes rather than modifying historical records.