cost approval

Cost Approval

RLM System

Costing of Finished Goods Purchase Orders

• Finished Goods Purchase Orders (FGPOs) are the orders Jordache places to the factories that produce the garments

• Costing of FGPOs to Related Factories is done in the factory by the Costing Department

• Costing of FGPOs to Non-Related Factories is done by the Related Vendor (MG, JIL, etc.)

• Completed (Finalized) Cost Sheets are sent to NY for Approval

• Related Factories cannot print labels or ship out of the RLM system without an Approved Cost Sheet

• NOTE: Some of the following slides will have different screen colors (browns and blues), but the screens you will see will all have the blue colors.

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Glossary of Training Terms

• The following terms will be used throughout this training program:– Field: A box on the screen into which you enter

information– Value: The information (data) being entered in the

field. Example: Division number, FGPO number– Icon: An image you may click to perform a function

such as select, submit or exit– (Single-)Click: Also “Select.” Hitting the left mouse

button once. This will activate an icon or select a row in a list of values

– Double-click: Hitting the left mouse button twice o the same part of the screen. Used only to select and return a value from a list.

Using the RLM System

• These are the primary RLM icons you will use:– Search: Located next to entry fields. Clicking this

icon brings up a pop-up window with a list of all possible values for the field (for example, the next to the Division field will show a list of all divisions) (Shift-F9 keys or F21 key)

– Select: Located on the Search pop-up windows. You may click on a line and click Select to return its value to the main screen

– OK (Submit): Located in the bottom right corner of each screen. Processes the information on screen and brings you to the next screen

– Return (Back): Located at the top of each screen. Click this icon to go back one screen (F2 key)

– Exit: Located at the top of each screen. Click this icon to return to the menu or close a pop-up (F3 key)

Enter your User ID and

Password here

Note: User ID and Password are initially assigned by MIS. You will be prompted to change it the first time you login. The password field IS case-sensitive.

Sign On

Click OK

Click the check (or hit the Enter key) to proceed

Welcome

Click OK

Enter your Company Number in the Company

field (JL=1, DS=4)

If you don’t enter a Company or enter the wrong number, you will receive this

error: Click OK

Select Application

Click the New York Inter Company

Costing button in the menu

Cost Entry

Enter the contractor (factory) number

(recommended – see next slide)

Or just click “Display Orders for All

Contractors” (F10 key) to view your entire list

Or enter a User PO # (optional)

Note: Security by Division is used to limit your list only to those divisions with which you work. Contact MIS to set up

your security. Otherwise, you will load POs from every division, which may take a few minutes.

Search for Contractor

To Select a Contractor (Factory)

click the icon

Double-click a Factory to select it, or single-click and hit the

button

You may use the Name, Type or

Country search boxes to jump down the list. Type in the field and

press enter

Click OK when

finished

Display Costs Requiring Approval

A list of all POs (from that factory, if selected) requiring cost approval appears. POs that have not been finalized by the factory/vendor or were

rejected are not visible

Click “Display All Orders” (F9 key) to

view the list including unfinalized and rejected costs


You may click on the animated Excel icon to

export the list to MS Excel for further

filtering. This may take a few seconds

Note: You must close all open MS Excel windows BEFORE clicking the export icon.


Right-click on the line of the PO you

want to check

A menu appears. Select “Update

Cost”

The Cost Sheet: Production Functions

• The cost sheet has already been filled out by the Factory or Related Vendor

• The Production Coordinator’s responsibility is to check the costs for each section and match them to expected or “standard” costs as determined by the Head of Production

• In addition, the Production Coordinator may enter or adjust the below the line costs that Jordache incurs after the Factory Cost– These costs include but are not limited to

Freight, Duty and Commission.

Cost Sheet Entry: The Cost Sheet

You may not change any

information on the factory’s entries. If anything is wrong,

you must reject the cost

Make sure the header information

is correct – including the style

(left side)

Scroll down to continue checking

the cost

Cost Sheet Approval: Fabric Description

Enter “F” in the last column of the

Allowance line and hit the Enter key

You must check the fabric description for the Vendor

(consigned) Fabric

Check Fabric Description

The description appears here

Click OK to return to the cost sheet

Cost Sheet Entry: The Cost Sheet

To see the cost sheet by section

with column headings, click “Alternate Entry

Mode”

Cost Sheet: View Headings

At any time you may click this icon

to refresh the calculations

Hit the Back button (F2) to return to the original entry mode

Cost Sheet: Vendor Fabric

If the Vendor is supplying the fabric, trim and/or

pocketing, the cost/yard and utilization per piece

will be on this screen Note: All fabric values are in cost per square yard ($/yd2)

Cost Sheet Approval

Continue checking each section using the Page

Down key or the scroll bars.

Cost Sheet: Total FOB Section

TOTAL COST is the Factory Cost including Vendor

Mark Up

Cost Approval: Enter Duty

If there is Duty, the percentage and

HTS # will appear here. F12 to recalculate

If there is Hanger Duty enter the

percentage here

Note: Hanger Duty only calculates if there is an entry in “Hanger

Imported” above

Click this icon to refresh the calculations

Cost Approval: Commission (not used)

If there is Commission, enter

the percentage here

Note: As of 2006 Jordache no longer has commission. Directions Studio may still have commission

for non-related agents.

Cost Approval: Freight

The default freight charge appears.

Click into the field to change it

Cost Approval: Miscellaneous

Miscellaneous below-line costs may be entered

here

Cost Approval: Quota (non-Duty)

Non-duty quota may be entered

here

Cost Approval: LDP Cost

Below the line totals appear here. LDP Cost is the final total cost to the

purchasing company

Click this icon to refresh the calculations

Cost Approval: LDP Cost

Click “Final” to approve the cost sheet. Continue

with the next slide

To save your changes without

approving, click the Exit button (F3 key)

Cost Sheet: Approve and Print

You may also want to check “Print

OPA reports” and “Print cost sheet”

Check “Approve Cost”

Click OK to submit

Cost Sheet: Print OPAs and Contract(s)

Click the printer to submit

Type over the Outqueue name to

change it

You may change the number of copies of each document that

will print

After Approving, you will be returned to the list of cost sheets pending approval.

After Finalize: Cost Sheet Listing

After Finalizing, you will be returned to the list of cost sheets to be entered. The Cost Sheet you finalized will not

be on this list.

Checking the OPAs and Contracts

• The OPA (Order Placement Advice) shows the agent/seller’s order to the factory, including the cost and order breakdown

• The OPA should have a header with the Vendor’s address

• If you do not see a header, please refer to the following slides

Documents Checklist

Rejecting a Cost Sheet

• If any part of the Factory/Vendor side of the cost sheet is incorrect, the cost sheet must be Rejected

• Rejecting a cost sheet sends it back to the Factory or Vendor for revision, and deletes any below the line entries you may have made

• Before Rejecting, be sure to add comments to the cost sheet describing the specific cost problems to the Factory or Vendor.

Select PO for Rejection

Right-click on the line of the PO to be

rejected

Select “Update Cost”

Enter Comments on Cost Sheet

Click here to enter comments and

instructions to the Factory or Vendor

Coster

Add Comments to Cost Sheet

Add your comments or questions by clicking on

an empty line and typing

Comments should be instructions for editing the cost to the Factory or

Vendor Coster

Click OK to update the comments

Click Return to go back to the

Cost Sheet

Exit Cost Sheet

Click Return to exit the cost sheet

Reject the Cost Sheet

Right-click on the line of the PO you

want to reject

A menu appears. Select “Reject

Cost”

The PO line disappears from the list. It will reappear with the Status “Cost

Revsd.” once the factory or vendor re-submit the cost for approval

Note: A red PO # means that comments

have been entered

COSTED

What Happens Next

• If Approved, Related Factory can print labels and ship the goods; Non-Related Vendors (e.g., MG can ship and bill the units)

• If Rejected, the cost sheet will disappear from your Orders List with the status “Cost Rejected” – all below the line costs will be deleted. When the Factory/Vendor re-submits the cost sheet, you must redo any below the line changes

• If you did not Approve the cost sheet, it will remain in your list of orders with the status “Costed” until you go back to it and Approve it.