Update Guided Cost

Inventory>>Update Guided Cost

HMIS provides an excellent tool to monitor and control the purchase price of an item for which purchase Order is entered and approved in HMIS. Before using this feature you must be sure about which items you need to control. HMIS controls only those items by two ways -

  • If you fix the guided cost
  • You may negotiate a rate for an item which you want to set as a ceiling and enter that rate in HMIS as guided cost. The rate you define as a guided cost will be the net rate per unit of measurement of receipt. E.g. for crocin tablets rate would be Rs 10 per strip. The net rate means (the purchase price minus discount plus excise duty plus sales tax plus Frt/Insu plus octroi plus other charges, if any).A question is often asked as if supplier is giving 10 strips free for 100 strips purchased then what would be net rate?

    Example: Suppose you fix the rate Rs 10.40 per strip with the term that if 100 Strips are bought then you will be entitled to 10 strips free. In such case for 100 strips HMIS will compare purchase order rate with guided cost and for free strips no comparison will be made. When you fix the guided cost for an item then HMIS will not allow the user to approve the purchase order if order price exceeds guided cost even if the rate of one of the items in the order exceeds guided cost.

  • If you do not fix guided cost
  • If you have no guided cost then HMIS will not allow the user to approve the purchase order if order price exceeds the latest purchase price for that item.

    Overriding limits
    HMIS provides facility to define the overriding limit for an individual user in terms of percentage.

    Example: If user A has limit of 10 percent then , he can approve the purchase order price of Rs 10.55 even if guided price is Rs 10.40 since his limit is Rs(10.40+1.04) 11.44.Overriding limits are computed by HMIS with reference to both guided cost as well as latest purchase price. Your system administrator can set or amend the overriding limits.

    • Select the item class (optionally select the item too) and click view. HMIS will show you all the items in this class. Initially for all the items Control Yes No flag is set to No by default.
    • Check the box against the item which you wish to exercise control.
    • Enter guided cost per unit of measurement of receipt.
    • Optionally select the supplier with whom you have negotiated the price. HMIS does not give the facility to have multiple suppliers. At the time of making the purchase order HMIS shows this supplier to the user but leaves the option to buy the item from any supplier. However HMIS records the selection of different supplier as deviation.
    • Enter control number, if any. Typically the items which you control are on your Control List. this number refers to that list.


     Releasing Soon

      HMIS Lite Version ON DEMAND
    • Low Investment
    • Scalable
    • Subscription based

    Newsletter - HMIS offers you wonderful tools to decide your strategies for higher footfalls,margins,lower consumption & much more...
    < Read More >