This document describes basic concepts in OASIS for importing as a buyer – that is “full resell” and not for commission or overage. OASIS V2.7 directly supports importers (was formerly a plugin for V2.6.3).
UPDATE INFORMATION: This document is correct for Projects 2 and Quotes 2. However, the Base column is not used for the landed cost in the Version 2 systems. Instead, a new "Landed" column shows the cost after import (fees, exchange, etc) and the difference between sell and the new landed column is profit.
- Net Price – the “distributor net price” in the currency of the vendor
- Overage – overage to be billed by the vendor in the currency of the vendor
- Vendor Price – the total price to be billed by the vendor (Net Price + Overage)
- Landing Factor – a multiplier used to represent import tariffs, shipping and other fees required for import
- Currency Exchange Rate or Conversion – the rate of exchange to convert the vendor’s price to the local currency
- Cost or Buy Price – the price in local currency to “buy” the item. Includes Vendor price, landing factor and exchange rate
- Margin – money earned on the item in local currency
- Sell Price – Customer’s price.
The following setup items must be performed:
Define the currency and the conversion rate from that currency to local currency.
Set up the manufacturer: identify the currency and landing factor.
Select “Manufacturers” application in OASIS. Then select “Configuration” under the “File” menu. Click on the “Currency” tab. If a new currency is required, simply type the ICO currency code and name of country. Then lookup and add the rate of conversion. (The example above shows that the OASIS user is in the United States and imports from Canada. The conversion rate shows the US dollar as having slightly less value than the Canadian dollar – that is $1 CAD converts to $0.9874 USD)
In OASIS V2.7, the terms tab of the manufacturer editor is slightly different. In addition to the changes, the “Order Terms” is where the import information is stored:
The example manufacturer above is located in the US and sells products in US dollars. The landing factor allows agents who import fixtures from another country into their own to calculate an estimate of what the actual cost of a fixture is once it is purchased in the manufacturer’s currency and all costs associated with the import of that fixture are factored in (duty, etc). The landing factor is also required to enable the OASIS import logic.
Generic: Landed = (Cost in factory denomination) * (Landing Factor) / (Exchange Rate)
For the importing piece to function correctly, users must set up the following:
- Global setting for putting landed cost in the base column in quotes.
- Manufacturer set up of both currency and landing factor. A landing factor of 1.0 enables the logic, but assumes there are no costs, taxes or other fees associated with the import (not likely). (The example shows that the costs to import are about 35% more than the cost of the item.)
In a quote, the sell price is initially set to the base price. Base = Cost * (Landing Factor) / (Exchange Rate). In the example below, $10.00 is the cost in U.S. dollars. Base is calculated as $10.00*1.35/.9874= $13.67.
By definition, importing is a resell transaction. Note the following columns and how they are defined (see above): Net Price, Overage, Cost, Margin, and Sell. For imported orders, the cost that is shown on the vendor order will actually come from the Net column. The cost column will contain the landed cost.
Generic: Cost = NET * (Landing Factor) / (Exchange Rate)
In the example below: “IMP MFG” is a vendor that trades in foreign currency. Net is $10.00, Cost is $13.67 ($10.00*1.35/.9874= $13.67). The margin (profit) is then added to the cost to calculate the sell price (e.g. $13.67 + $1.52 = $15.19). The math calculates out to 4 decimals in the background.
When the imported manufacturer's PO is printed, the only price that shows is the vendor price (e.g. $100 Net Price + $0 Overage):
Profit paid to the sales force will NOT include the landing factor or currency exchange rate – even though it is possible to make (or lose) a little profit during the import process.
No auto discounts - Some importers essentially have representative contracts with the manufacturers and a few chose to use the commission as a discount (e.g. the item has a wholesale value of $100 with 10% commission – the importer would just pay $90) when purchasing the item. This makes sense for both the sales agency and the manufacturer as it simplifies the billing process and removes one set of money conversions. The current implementation of V2.7 does not directly support taking an automatic discount.