Understanding Cost Basis and Cost Basis Errors

Derek Torres
Derek Torres
  • Updated

Important Note: PartsLedger is now PartsManager. PartsManager retains all of the parts purchasing and warehouse management automation benefits of its predecessor. To read more about this exciting change, click here.

 

In PartsManager, formerly known as PartsLedger, Cost Basis is a background process that calculates the unit cost (cost basis) for all Stock Adjustment types based on either First In First Out (FIFO) or Average Cost by Warehouse (AVG) — whichever method your account is configured to use.

It is the cost basis process that is the first step in creating Journal Entries in your PartsManager system.

  • First in First Out (FIFO) - When you pull inventory of an item from a warehouse, the cost of that item will be determined by the order in which the items were originally received to that specific warehouse (First in First Out). This is bypassed when you use Direct Purchase for Sales Order, when ordering parts directly for a Job.
    Screenshot_2023-03-03_at_9.46.49_AM.png
  • Average by Warehouse (AVG) - When you pull inventory of an item from a warehouse, the cost of that item will be determined by the average of the cost of that item in the specific warehouse. This is bypassed when you use Direct Purchase for Sales Order, when ordering parts directly for a Job.
    Screenshot_2023-03-03_at_12.09.31_PM.png
    Calculation = Sum of Item’s Cost for Warehouse / Total Qty of Item in Warehouse

The Cost Basis function is run automatically each time a new adjustment is posted. However, users can manually run Cost Basis for troubleshooting purposes.

This article will walk you through how to run a Cost Basis, and what to do if you come across a Cost Basis Error.

 

How to Run a Cost Basis

Sometimes you may need to run a Cost Basis for troubleshooting purposes.

  1. On the Navigation Bar, click Inventory.
  2. Then click Stock.
  3. Click the Run Cost Basis button.
    Screen-Shot-2022-07-06-at-12-40-59-PM.png
  4. A Warning Message will appear to inform you that this process may take some time and limit your ability to use PartsManager temporarily. If you want to proceed, click Confirm.
    Screen-Shot-2022-07-06-at-12-45-25-PM.png
    • If successful, you will see this message in the bottom left-hand corner of your screen.
      Screen-Shot-2022-07-06-at-12-52-04-PM.png
    • If unsuccessful, you likely have a Cost Basis Error and will receive a message that looks similar to this.
      Screen-Shot-2022-07-06-at-12-51-09-PM__1_.png

 

What do I do if I see a Cost Basis Error?

On the Stock Page you may come across a Cost Basis Error. If you receive a Cost Basis Error, please contact our Customer Support Team.

Be sure to collect all relevant data for our Customer Support Team. Either send a screen capture of the Cost Basis Error or provide the Transaction #, Timestamp, and Cost Basis Error that is listed on the Cost Basis Error. See the below image:
Screen-Shot-2022-07-06-at-12-51-09-PM__1_.png

How do I know if Cost Basis is Running?

If cost basis is currently running you will see a progress bar on the Stock Summary page, similar to the following:

Screenshot 2023-10-17 at 11.16.19 AM.png

Also if you are attempting to create a transaction you will get the "Can't create while Cost Basis is running" error.

Once cost basis has been completed successfully you should see no progress or error message at the top of the Stock Summary Page.

In some cases, you will find that the cost basis process has failed. In this case, you will see an error notification at the top of the Stock Summary Page:

Screen-Shot-2022-07-06-at-12-51-09-PM (1).png

See What do I do if I see a Cost Basis Error? for more details.

 

I am getting the error "Can't create while Cost Basis is running", what do I do?

If Cost Basis is running, if you attempt to create any transaction (i.e. receipts, voids, fulfills, unfullfills, etc) you will get the error "Can't create while Cost Basis is running."

This is because transactions can not be created while Cost Basis is running. You should wait until Cost Basis has finished running in order to complete transactions. This typically only takes a couple of seconds. If for some reason your Cost Basis is running a very long time or is stuck, please contact Customer Support.

 

I am getting the message "Cost basis may be stuck. Please contact the support team for details", what do I do?

If cost basis has been running for more than five minutes, the message "Cost basis may be stuck. Please contact the support team for details" will appear.

If you see this error, please contact our Support Team, and they can investigate the issue.

Was this article helpful?

/

Comments

0 comments

Please sign in to leave a comment.