Option-Cost Method

With the Option Cost Method, you enter the item’s actual cost, including federal excise tax, at point of sale. The Option Cost Method is used for high-cost nonstock parts and tires that you purchase for special jobs.

Note: If you have set up a cost-replacement code, you can type either the item’s cost or letters from the cost-replacement code on the OC Code screen.

To set up items an option-cost item

1. Add the item to the inventory. For more information, see Adding Items to the Inventory.

2. On the Inventory Maintenance screen, do the following:

Type the letter N in the Inventory (Y/N) field.
Select the Force Option Cost check box.

3. On the Site Prices and Quantity screen, do one of the following:

Leave the Relief % set to 0.0000.
Type a relief percent for the item. This value is used to calculate the item’s cost when its cost is not entered at point of sale.

Note: Entering an item’s cost is not mandatory when Force Option Cost Required is set to No. This setting is on the Other tab of the System Controls screen.