Update Product Costs via PO Entry

During Purchase Order Entry, if the entered cost differs from the cost on the Product record, you will have the opportunity to update the cost. There are four different costs that could possibly be updated in this manner:

  • Default PO Cost
  • UM Cost
  • Primary Vendor PO Cost
  • 2nd Vendor PO Cost

Note: Updating these costs during PO Entry DOES NOT revalue current on-hand inventory. The cost change only applies to current and future receiving events.

System Setup

There is one setting that determines the behavior of this function.

  1. Navigate to Administration ➤ System Configuration and select Purchase Order from the drop-down menu.
  2. Find the setting Update Cost Changes on Product Record and double-click it. The options are as follows:
    • Ask: The system will prompt you to update the Product record each time a cost [that does not match the current cost] is entered.
    • Always: The system will automatically update the Product record with the new cost.
    • Never: The system will not prompt you to update the Product record with the new cost.
  3. After making your choice, save System Configuration.
System Configuration - Purchase Order

PO Entry

When the cost is entered during PO Entry, the system will evaluate the entered cost vs. the current cost on the Product record. If the costs do not match, the system will prompt you to update the Product record. See below for examples of each alert.

As mentioned above, one of four different costs could potentially be updated during PO Entry; the Default PO Cost, the UM Cost or one of the two Vendor PO Costs.

Here is the sequence that occurs when the cost entered on a PO does not match the cost on the Product record:

  1. If the Product's Primary Vendor and the Product's Base UM were entered on the PO, then the system will prompt the user to update the Primary Vendor PO Cost.
  2. If the Product's 2nd Vendor and the Product's Base UM were entered on the PO, then the system will prompt the user to update the 2nd Vendor PO Cost.
  3. If neither the Primary nor 2nd Vendor were entered but the Product's Base UM was entered on the PO, then the system will prompt the user to update the Default PO Cost.
  4. If the Product's Alternate UM was entered on the PO, then the system will prompt the user to update the UM Cost.

Example: Updated Vendor PO Cost

The Vendor Name is called out in the alert when the system determines that the cost entered on the PO does not match the existing Vendor PO Cost.

PO Entry - update Vendor Cost

Example: Update Default PO Cost

If you don't see either a Vendor Name or UM name in the alert, then the system will update the Default PO Cost.

PO Entry - update Default PO Cost

Example: Update UM Cost

The Unit of Measure name is called out when the system determines that the cost entered on the PO does not match the existing UM Cost.

PO Entry - update UM Cost

Flowchart

Maybe you are more of a visual learner? If so, here's a flowchart that illustrates the above description.

Update Cost Changes flow chart

Optional: Update Primary Vendor PO Cost and Default PO Cost at the same time

AVSHooProCalculate_Sell_Price_v0.AVS

Install the script attached above if you want to match the Default PO Cost after updating the Primary Vendor Cost during PO Entry.

PO Entry - Update Primary Vendor PO Cost and Default PO Cost