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Retail Cost Codes [FM]

Retail Cost Codes​

From the DockMaster menu, select File Maintenance > Retail Cost Codes

Retail Cost Codes allow tracking of the cost of non-inventoried (One-time Part) items. The cost of an item is obtained by subtracting the markup from the retail price at the time of sale. Cost codes do not affect selling prices; they are used to generate a cost.

The accounting entries are derived from the Department entered on the Cost Code or at the time of sale. The Department is a required entry when a Cost Code is used.

Note: The equation for calculating a Cost Code percentage is (RETAIL PRICE minus COST) divided by RETAIL PRICE

For example, when an item's retail price is $1.00 and its Cost Code is 30%, the cost of that item will be recorded as $.70 ($1.00 minus 30% of $1.00).

Cost Codes are used by the Service module. The clerk must enter a semicolon ";" followed by the appropriate Cost Code at the Item Number prompt.

  • Cost Code - Enter any combination of up to 3 letters or numbers or press F6 to get a list of existing codes.
  • Discount Percent - Enter the mark-up of this item in terms of the percentage of the selling price (enter 30 if retail is marked up 30% above cost).

The discount percentage is derived from the equation below:
(RETAIL PRICE minus COST) divided by RETAIL PRICE

  • Service module, the Sales and Cost of Sales accounts on the Service Accounts tab in the Department File are used; the Inventory account is still derived from the General Accounts tab.