The Other Cost Tab will be where you can setup whether the assembly component's total cost will be zero (0) and should not be added to the Other Cost Total. This tab will only be visible when the inventory item's Item Type field is set to Assembly.
How does this tab works? Add a new item and set Item Type to Assembly. Then go to Assembly tab and enter the component items. As you move on to Other Cost tab, all component items added into Assembly tab will be carried over.
In Other Cost tab, the check box to the right of the Cost indicates whether the item’s total cost should be zero (0) and should not be added to Other Cost total found at the bottom right of the form. For example, if you unchecked the check box for a component item, its cost will not be included in computing Other Cost.
In Pricing tab, there is a new pricing method that considers Other Cost. This is Markup S&O Cost (Standard and Other Cost) and when selected will show a Percent field next to it. This Percent field is where percentage for marking up Standard and Other Costs must be entered.
Example:
If an inventory item has the following data: Standard Cost is 2,009.55, Markup S&O Cost is used as Pricing Method, and 10% is entered into Percent field. Say this assembly item has the following components' Cost in which A is unchecked: A is 10.55, B is 100.00, and C is 1,899.00. Now the computation for Sales Price would be:
Sales Price = Standard Cost + Other Cost + [(Standard Cost + Other Cost) * 10%]
= 2,009.55 + 1,999 + [(2,009.55 + 1,999) * 10%]
= 4,008.55 + (4008.55 * 10%)
= 4,008.55 + 400.855
= 4,409.405