# TradeQloud Setup - Sales Cost

## Sales Costs

<table data-full-width="true"><thead><tr><th width="261">Field</th><th>Description</th></tr></thead><tbody><tr><td>Enable Sales Costs</td><td>Enable this feature to track sales costs in addition to the cost of goods sold. Once enabled, it is possible establish Sales Cost Budget records (master data).</td></tr><tr><td>Sales Cost Transactions</td><td>Select the demand transactions to which sales costs can be applied. After selection, the application will generate Transaction Sales Cost Budget records on the transaction, or it will offer users the option to add these manually to a transaction.</td></tr></tbody></table>

{% hint style="success" %}
It is recommend that **Sales Order & Invoice** is populated in the Sales Cost Transactions field
{% endhint %}

<table data-full-width="true"><thead><tr><th width="245">Field</th><th>Description</th></tr></thead><tbody><tr><td>Sales Cost Subsidiaries</td><td>Select the Subsidiaries that Sales Cost should execute on.</td></tr><tr><td>Sales Cost Locations</td><td>Select the Locations that Sales Cost should execute on.</td></tr></tbody></table>

<table data-full-width="true"><thead><tr><th width="260">Field</th><th>Description</th></tr></thead><tbody><tr><td>Sales Cost Rounding</td><td>Allows specifying the decimal rounding precision for calculated sales cost values. This setting determines how the system rounds off the final amounts of Sales Costs allocated to each item or transaction line, ensuring consistency and accuracy in financial reporting.</td></tr></tbody></table>

{% hint style="success" %}
The recommend **Sales Cost Rounding** is 3 decimals
{% endhint %}

<table data-full-width="true"><thead><tr><th width="261">Field</th><th>Description</th></tr></thead><tbody><tr><td>Default Sales Cost PO Creation Method</td><td><p>Defines the standard action for generating POs (Purchase Orders) for costs. </p><p></p><p>This setting determines the default value on Customer, Item or Transaction Sales Costs (Budget) records. On individual records this setting can be changed as required.</p></td></tr><tr><td>Default Sales Cost Processing Method</td><td>The Sales Cost Processing defines the strategy for how the Sales Cost Record is transacted. </td></tr></tbody></table>

{% hint style="info" %}
For more information, see the Sales Cost Processing Methods Page.
{% endhint %}

{% hint style="success" %}
It is recommended that **Change Rate and Custom GL Posting** is set as the **Default Sales Cost Processing Method**
{% endhint %}

<table data-full-width="true"><thead><tr><th width="262">Field</th><th>Description</th></tr></thead><tbody><tr><td>Default Sales Cost Custom Price Handling Method</td><td><p>Allows for the differentiation between custom pricing derived from customer master data versus custom pricing set on a transaction (by a user or via integration e.g. EDI). This setting only applies when:</p><ul><li>The transaction line has the price level set to ‘Custom’</li><li>A Sales Cost applies that has ‘Change Rate’ set to TRUE </li></ul></td></tr></tbody></table>

The following **Custom Price Handling Methods** options are available:&#x20;

<table data-full-width="true"><thead><tr><th width="266">Field</th><th>Description</th></tr></thead><tbody><tr><td>Always Change Custom Rate</td><td>Sales Cost will modify the rate in all scenarios. </td></tr><tr><td>Change Manually Entered Rates Only</td><td>Sales Cost will modify the rate if a user/integration or script has (manually) changed the rate on the transaction.</td></tr><tr><td>Change Customer/Item Specific Custom Pricing</td><td>Sales Cost will modify the rate if the rate is sourced from the Customer Item Pricing record.</td></tr><tr><td>Never Change Custom Rate</td><td>Sales Cost will never modify the rate.</td></tr></tbody></table>

{% hint style="success" %}
It is recommend that **Always Change Custom Rate** is set as the **Default Sales Cost Custom Price Handling Method**&#x20;
{% endhint %}

<table data-full-width="true"><thead><tr><th width="268">Field</th><th>Description</th></tr></thead><tbody><tr><td>Default Percentage Rate Calculation Method</td><td>Select the default value to use as the starting value when a percentage Sales Cost is used to increase/decrease the rate.</td></tr></tbody></table>

&#x20;For above **percentage rate calculation methods** following options are available:

<table data-full-width="true"><thead><tr><th width="270">Option</th><th>Description</th></tr></thead><tbody><tr><td>Starting Rate</td><td>is the price (custom or price level) entered on the transaction line during creation of the transaction</td></tr><tr><td>Rate </td><td>is the calculated price after all sales costs set as 'Change Rate' = TRUE have been applied to the starting rate</td></tr><tr><td>Net Rate</td><td>is the calculated net margin after all sales costs set as 'Change Rate' = FALSE have been applied to the starting rate</td></tr></tbody></table>

{% hint style="success" %}
It is recommended that **Starting Rate** is used in **Default Percentage Rate Calculation Method** fields
{% endhint %}

<table data-full-width="true"><thead><tr><th width="260">Field</th><th>Description</th></tr></thead><tbody><tr><td>Automatically Process Sales Cost Variance</td><td>When a Sales Cost PO is billed, if there is a variance the script will automatically create a Journal for the variance.</td></tr></tbody></table>


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