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  • 1.  Inventory item cost - orders and invoices

    Posted 12 days ago
    Hi - need some guidance on inventory costs. When PO is created eg: 10 unit of item AA at $10 per unit = total $100. Items then received at the warehouse. Once the invoice came, it came with a 1% discount. So in the 3 way matching process, we'd change the item price at invoice entry to match at total $90. From what we've found, any change in total cost at invoice entry level would change the current cost of the item. When we look at the item maintenance, the current cost field will change to $9/unit, so when the next PO is created, it picks the new cost of $9 and not $10. Is there a way to stop this from happening so the item cost in the system will remain at $10 per unit?
    From accounting perspective, the current cost for the item should be $9 as that's the last price we've paid for. But from the operations perspective this is not correct and they'd constantly have to change the price when creating the next PO.

    Thank you!

    Naja Marjan
    Metal Industries, Inc
    Clearwater FL
    Academy - Online Interactive Learning from Experts

  • 2.  RE: Inventory item cost - orders and invoices

    Posted 9 days ago
    The cost that appears on the PO is determined bye the "Cost Selection" field in the Purchase Order Processing Setup Options window.
    You can select the following options that meet your business needs.
    Current Cost
    Standard Cost
    Originating Invoice Cost.

    PO Setup Options

    Justin Wiley
    O'Day Management, Inc.

    Academy - Online Interactive Learning from Experts

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