Calculation of alternate cost

Pricing Matrix  •  Article  •  1/28/2026  • 

The Alternate Cost Calculation page helps you to automatically calculate the alternate costs for items using different cost sources, apply optional pricing formulas, preview the results, and update the values used in the pricing matrix.

To calculate the alternate cost, follow these steps:

  1. Select the Search icon , enter Alternate Cost Calculations, and then choose the related link.

    The Alternate Cost Calculations page opens.

  2. On the Calculation Source FastTab, in the Source Type field, select an option. It defines the basis for calculating the cost. The available options are:

    • Blank: The system skips the alternate cost calculation and uses the default value.
    • Alternate Cost: The system copies the value from the Selected Alternate Cost Code field instead of calculating it.
    • High Cost: The system considers the highest price for the item in the item ledger entries for the period specified in the Date Formula field.
    • Average Cost: The system calculates the average price for the item in the item ledger entries for the period specified in the Date Formula field.
    • Low Cost: The system considers the lowest price for the item in the item ledger entries for the period specified in the Date Formula field.
    • FIFO Cost: The system calculates the oldest price for the item in the item ledger entries for the period specified in the Date Formula field.
    • Item Cost: The system considers the unit cost of the item on the related Item Card page.

  3. In the Source Alternate Cost Code field, select the desired alternate cost code. This field is visible only when the Alternate Cost option is selected in the Source Type field.

  4. In the Source Period field, select an option. The available options are Current and Future. This field is visible only when the Alternate Cost option is selected in the Source Type field.
  5. In the Date Formula field, enter the period. This field is visible when any option other than Alternate Cost option is selected in the Source Type field.
  6. On the Calculation Destination FastTab, in the Destination Alternate Cost Code field, select the code where you want to save the calculated cost.
    You will receive an error, if this field value is left blank.
  7. On the Calculation Options FastTab, turn on the Process Zero Costs toggle to include item ledger entries with a value of 0 in cost calculations. When the toggle is turned off, zero-value entries are excluded from all calculations.
  8. In the Pricing Formula Code field, select the code to adjust the calculated cost, if required.
  9. Turn on the Preview Mode toggle to preview the change of costs before applying it.
    When you turn on this toggle and select Ok, the Alternate Cost Preview page opens. This page displays information about the existing cost and calculated cost with the associated information for the selected item.

This applies the calculated cost to the selected alternate cost code updating the pricing matrix and records the changes on the Item Alternate Cost History page.