--- title: "Purchase Cost Defaults" canonical: "https://kb.myframeworks.com.au/space/FRAM/104759302/Purchase%20Cost%20Defaults" format: markdown --- # Overview The **Purchase Cost Defaults** screen allows you to define additional costs that are automatically applied to purchase orders based on specific criteria such as supplier, product groups, and transaction types. These additional costs can include freight charges, minimum order surcharges, restocking fees, and other purchasing-related expenses that are calculated using various methods such as percentages, fixed amounts, or weight-based charges. # Accessing Purchase Cost Defaults To access the **Purchase Cost Defaults** screen, perform the following: 1. Click **Frameworks** and navigate to **Purchasing & Receipting > Maintenance > Purchase Cost Defaults** from the navigation tree. ![image-20250923-044708.png](media://2d5d3af7-2fcf-46dc-8ee3-9e675bb87e81) # Navigating Purchase Cost Defaults The Purchase Cost Defaults screen is made up of 2 main sections: > Macro (toc) ## 1. The Header Details Section The Header Details section allows you to define new purchase cost defaults. This section contains criteria fields that determine when and how additional costs are applied to purchase orders. The following field can be configured - **Branch: **From the **Branch** dropdown menu, select the branch where this cost default applies. Choose **All Branches** to apply the cost across all branches within your organisation, or select a specific branch to limit the application. - **Code: **In the **Code **field, enter or search for the purchase cost code that identifies this additional cost. Click the **search** icon to use the **Purchase Cost Finder **window to select from the existing purchase cost codes defined in [Purchase Cost Maintenance](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/104693762). - The cost code determines the GL account used for posting > ✅ Refer to [Purchase Cost Maintenance](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/104693762) for more information about creating and managing cost codes. - **Tran Type: **From the **Tran Type** dropdown menu, select the transaction type where this cost will be applied. Available options include **Purchase Order**, **Stock Return **or** Value Claim**. - This allows for different cost structures to be maintained for orders versus returns. > ℹ️ **Note: **Consignment purchase orders and consignment returns are excluded - **Supplier: **In the **Supplier **field, enter or search for the specific supplier to which this cost applies, or leave blank to apply to all suppliers. When blank, the cost applies to all suppliers. > ℹ️ **Note: **Multiple cost records can exist for the same supplier with different criteria. - **Product Group: **In the **Product Group **field, enter or search for the product group to which this cost applies, or leave blank to apply to all product groups. - **Sub Group: **In the **Sub Group **field, enter or search for the specific product sub-groups within the chosen product group, or leave blank to apply to all sub-groups. - Only available when Product Group is populated - **Total Order $: **In the **Total Order $** field, enter the maximum order value threshold for cost application. The cost only applies when the total order value remains **below** this amount. - When $0.00 (zero dollars), the cost applies regardless of order value - Used for minimum order charges and value-based cost structures - **Method: **From the **Method** dropdown menu, select how the additional cost is calculated. Available options include: - **Percent**: Calculates cost as a percentage of the order or product group value - **Total**: Applies a fixed dollar amount to the entire order - **per KG**: Calculates cost based on product weight - **per M3**: Applies to timber products with M3 unit of measure - **per Cubic Volume**: Uses product dimensions for any unit of measure - **Factor: **In the **Factor **field, enter the calculation factor used with the selected **Method**. - For **Total** method: represents a dollar value - For **Percentage** method: represents a percentage value - For **weight/volume** methods: represents cost per unit - **Use Creditors: **Enable the **Use Creditors Checkbox** to create creditors ledger entries. Leave disabled for direct GL posting only. > ⚠️ Required to be enabled when using **Subcontractors.** - **Per Delivery: **Enable the **Per Delivery Checkbox** to apply the full charge to each receipt. Leave disabled for the charge to be allocated proportionally across receipts > ⚠️ Only available when Method is set to **Total** - **Subcontractor: **In the **Subcontractor **field, enter or search for a subcontractor supplier if this cost involves third-party services such as freight or delivery charges. - Creates separate receipts for subcontractor charges during goods receipt > ⚠️ To be used with percentage, weight or volume calculation methods. > ✅ Refer to [https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/116129831](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/116129831) for more information about handling third-party charges. - **Max Charge Value: **In the **Max Charge Value **field, enter the maximum amount that can be charged for this cost type, regardless of the calculated amount. - Available for all methods except **Total** - Default value is 0 (no maximum limit) - Prevents excessive charges on large orders > For example, if a 5% charge on a $1,000 order would calculate to $50, but the maximum charge value is set to $40, then $40 would be the applied cost. --- ## 2. The Maintenance Grid Section The **Maintenance Grid** section displays all existing purchase cost defaults with their current configuration. Each row represents a specific cost rule that will be automatically applied to purchase orders meeting the defined criteria. - Click the **Edit **icon, at the end of the row, to use the **Purchase Cost Details Line Maintenance** window to make changes to the purchase cost default. - Click the **Delete **icon to remove the purchase cost default. > ℹ️ **Note: **Any changes will only affect future purchase transactions using this cost code.
For a maintenance grid column overview, click here... - **Branch**: Shows which branch the cost applies to (0 indicates all branches) - **Code**: The purchase cost identifier - **Description**: Descriptive name of the cost - **Tran Type**: Purchase Order or Stock Return - **Supplier**: Specific supplier or blank for all suppliers - **Prod. Group/Sub Group**: Product categorisation criteria - **Total Order $**: Maximum order value for cost application - **Method**: Calculation method used - **Factor**: Calculation factor or amount - **Use Creditor**: Indicates if creditors ledger is used - **Per Delivery**: Shows delivery-based cost application - **Subcontractor**: Third-party supplier for the cost - **Maximum Charge**: Cost ceiling amount
# Additional Information > ✅ Refer to the [https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/72744978](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/72744978) guide for more information. > ✅ > ✅ Refer to [https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/104693762](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/104693762) for more information about configuring automatic cost application rules.