Calculating Extension Amounts

The Open Purchase Order Report, Open Orders by Item Report, and Open Orders by Job Report show the ordered quantity that has not yet been received. The extension amount on these reports is calculated according to a variety of factors.

Standard, drop-ship, and repeating orders use specific calculations.

Master orders are printed with line extensions that are not included in the totals.

Material requisitions are printed with line extensions that are totaled separately.

For all inventory, special, and miscellaneous items, the back order quantity is used to calculate the open order extension amount using the following equation:

Back Order Quantity x Unit Cost = Extension

Note When the Clear Back Order upon Accept check box is selected on the Receipt of Goods Entry Lines tab, the Back Ordered field is set to 0 (zero) and the purchase order is fully received. Therefore, the extension amount on the reports is 0.00.

If the back order quantity is zero and the received quantity is zero because the item has not yet been received, the ordered quantity is used to calculate the open order extension amount using the following equation:

Ordered Quantity x Unit Cost = Extension

For miscellaneous charges, the invoiced quantity is subtracted from the ordered quantity to derive the open order extension amount using the following equation:

Ordered Quantity - Invoiced Quantity = Extension

For more information, see:

Defining the Hierarchy of Costs

Open Purchase Order Report

Open Orders by Item Report

Open Orders by Job Report