Set up cost calculation templates

Cost calculation templates are used to organize the visibility of costs within the settlement process. This setup applies to settlement calculations only when the Accounting Method field is set as Account Sale or Pooling. In this settlement, only value entries representing costs from the cost template are considered, and any other entries are excluded when determining the settlement amount.

The cost calculation template consists of cost lines that define which costs are applied and how. A cost line can be based on one of three sources:

• Item charge — the standard type. The Item Charge No. field is filled and drives the cost. For more information, see Set up item charges.
• Work centre — for production costs. The Work Centre No. field is filled; the Item Charge No. field must be blank. The system reads capacity ledger entries from production orders. See Production cost lines below.
• G/L account — for costs posted by Aptean Trade Management. A trade plan with a G/L Account No. is selected; the G/L account fields are auto-populated. Requires Aptean Trade Management. See G/L account cost lines below.

• Only item charges of type Costs can be used in item charge-based cost template lines.
• Trade plans can be defined on the cost template line to populate the item charge, work centre, or G/L account associated with the specific trade plan if the Aptean Trade Management extension is installed.

These item charges represent a list of all costs that potentially play a role when managing a specific account sale transaction type. For example, one could consider that importing pineapples out of Costa Rica implicates a different cost chain than buying fruit locally. While both transactions can be settled through an account sale, it is highly likely that the costs associated with each of them will vary significantly. By establishing cost templates for various types of transactions, the presentation of costs to both users and vendors can be effectively structured.

Enter the required information in the following fields to configure cost templates and determine how the respective costs must be applied to account sale or pooling settlement lines.

Field	Description
Trade Plan Code	Select a trade plan code to set up the costs with.
Trade Plan Description	Specifies the description of the selected trade plan.
Item Charge No.	Specifies the item charge number associated with the selected trade plan. You can manually select an item charge number to set up the costs when the Trade Plan Code field value is left blank.
Item Charge Description	Specifies the description of the selected item charge.
Work Centre No.	Specifies the work centre of this cost template line. Automatically populated when a production trade plan is selected. The work centre is editable only when no trade plan is set.
Work Centre Name	Specifies the name of the work centre.
G/L Account No.	Specifies the G/L Account that the Trade Plan posts the expected cost to. Automatically populated from the selected Trade Plan. Cannot be edited manually; change the Trade Plan to change this value.
G/L Account Name	Specifies the name of the G/L Account used for the expected cost.
G/L Account No. (Actual)	Specifies the G/L Account that the Trade Plan posts the actual (invoiced) cost to. Automatically populated from the selected Trade Plan. Cannot be edited manually; change the Trade Plan to change this value.
G/L Account (Actual) Name	Specifies the name of the G/L Account used for the actual cost.
Deduction Method	Select the method the system must use to determine where the cost must be populated. The available options are: Net Revenue: The cost is populated in the Costs (Deducted Revenue) section on the Account Sale page or the Costs (Deducted Revenue) field on the Pooling page. Account Sale Amount: The cost is populated in the Costs section on the Account Sale page or the Costs field on the Pooling page. Document: The system calculates additional costs, such as packaging or transportation, at a document level, for settlements with the Accounting Method field value set to Account Sale or Pooling. These document costs do not affect the settlement amount calculation and are posted only as item charge lines when a purchase invoice is created from the settlement. Document Line: The system calculates additional costs, such as packaging or transportation, on a document line level, for settlements with the Accounting Method field value set to Account Sale or Pooling. These document costs do not affect the settlement amount calculation and are posted only as item charge lines when a purchase invoice is created from the settlement.
Cost Application Method	Select the value the system must use when populating costs in the settlement lines. The available options are: Expected: The system uses the expected value of a cost. Actual: The system uses the actual (invoiced) value of a cost. Actual if one exists: When the same cost — for example, a trade plan cost with Accrual Type set to Actual Cost — is applied more than once, such as on multiple postings against a receipt, and at least one of those cost postings has been invoiced, the system uses that one invoiced (actual) amount as the entire cost applied to the settlement, instead of summing the individual postings. If none of the cost postings have been invoiced yet, the expected amount is used for the whole cost instead. Actual if exists: Unlike Actual if one exists, the system evaluates each individual cost posting separately: for each posting it uses the actual (invoiced) amount if the posting has been invoiced, otherwise the expected amount, and then sums these individually resolved values across all postings for the cost. When a cost is split across multiple purchase documents, this means the total is the sum of the actual (invoiced) value for the documents already invoiced and the expected value for the documents not yet invoiced. This option is available when the Deduction Method field value is set to Account Sale Amount or Net Revenue. Manual: The system does not automatically populate a value, and the cost must be entered manually. The difference between the expected and actual cost application method can only be made when the Aptean Trade Management extension is installed, as Business Central does not provide the capability to post costs via item charges as expected. Calculation: The system uses the calculation values specified on the Cost Template Line Document Calculations page to calculate document costs. You can select the Calculation action to define the calculation values. For more information, see Set up document calculations for cost template lines. This option can be selected only when the Trade Plan Code field value is set to blank, and the Deduction Method field value is set to Document or Document Line.
Sorting Order	Enter the order in which cost template lines should be sorted when creating account sale cost or pooling cost lines using this cost template. When the sort orders are identical for one or more cost template lines, the system sorts them in alphabetical order.
Invoice Quantity Type	Select how the system determines the invoice quantity on purchase invoice lines created during settlement registration. The available options are: (Blank): The purchase invoice line uses a quantity of 1. This is the default behaviour. Eligible Base: The system sums the eligible base from the related settlement detail records and uses that sum as the invoice quantity. The Direct Unit Cost is recalculated to preserve the total invoice amount. This field is visible only when Aptean Trade Management is installed, requires a Trade Plan Code on the cost template line, and is only supported when the Deduction Method is set to Document Line.

Production cost lines

To configure a cost template line as a production cost line, fill the Work Centre No. field and leave Item Charge No. blank. You can optionally select a trade plan of type Production to auto-populate the work centre.

Capacity ledger entries for production orders are created by standard Business Central when the production journal is posted. Aptean Trade Management is not required for production cost lines.

The Deduction Method options Document and Document Line are not supported for production cost lines. For production cost lines, Cost Application Method has no effect on the amount retrieved — production costs are always sourced from actual capacity ledger entries, so Expected results in a 0 cost amount.

For more information about how production costs appear in settlements, see Understand production costs in settlements.

G/L account cost lines

G/L account cost lines require Aptean Trade Management to be installed and integrated with Aptean Grower Return. G/L account values are sourced exclusively from trade plans configured in Trade Management.

To configure a cost template line as a G/L account cost line, select a trade plan that is configured with a G/L Account No. in Aptean Trade Management. The G/L Account No. and G/L Account No. (Actual) fields are auto-populated from the trade plan and are read-only.

The following constraints apply:

• A cost template line cannot have both Work Centre No. and G/L Account No. filled at the same time.
• The Deduction Method field cannot be set to Document or Document Line for G/L account cost lines.
• The G/L Account No. and G/L Account No. (Actual) fields can only be changed by selecting a different trade plan — they cannot be entered manually.
• When a trade plan without a G/L account is selected, any previously populated G/L account fields are cleared automatically.

G/L account-based costs are currently supported in Account Sale settlements only. For Pooling and Consignment settlements, G/L account cost lines are skipped during calculation.

For more information about how G/L account costs appear in settlements, see Understand G/L account costs in Account Sale settlements.

The cost template is set up.