Requisition Management

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  Kowa Member Posts: 918

  2005-07-12

  sameer_ce wrote:

  What Happens to the price of an item if its price varies on a purchase order? suppose today i am buying an item for Rs10 per pc, later , i get the same item for Rs 15 per pc, will the new price be updated in the item master.??

  The last purchase price (excluding any discounts !) is written to the Field "Last Direct Cost" in the item table when the purchase line is posted (invoiced)
  But this "Last Direct Cost" is only used for the next order if no other valid purchase price is available in the table "Purchase Price"

  Kai Kowalewski

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  dmitrip Member Posts: 44

  2005-07-13

  Or Standard Cost/Unit Cost (from Item card) if you use Standard Costing method and you don't have Purchase Prices.

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  Kowa Member Posts: 918

  2005-07-13

  dmitrip wrote:

  Or Standard Cost/Unit Cost (from Item card) if you use Standard Costing method and you don't have Purchase Prices.

  
  
  The "Direct Unit cost" in a purchase order always uses "Last direct Cost" if there are no other purchase prices, if costing method "Standard" is used then the "Unit cost (LCY)" in the purchase line is copied from the "Standard Cost" of the item ( or, if existing, from the Stockkeeping Unit (SKU), ). The "Unit cost" ( yet another field for statistical purposes) ( can be LCY or ACY) is in this case copied from the "Direct Unit cost" ( in the same currency).
  
  If other costing methods are used then the "Unit cost (LCY)" is calculated by applying the line discounts ( conditions , item discounts etc.) to "Direct Unit Cost" and convert this to LCY if necessary.
  "Direct Unit Cost" ( can be LCY or ACY ) and "Unit cost (LCY)" should not be confused.
  "Direct Unit Cost" is the basis for the line amount ( together with Qty. and Discounts) and is used to check the invoice (total amount etc.) whereas
  "Unit cost (LCY)" is used to determine the inventory valuation of the item which is being purchased. This is the most important field, because it represents the basis of the item-cost-adjustment routine and responsible for the balance of the inventory account.

  Kai Kowalewski

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  dmitrip Member Posts: 44

  2005-07-13

  Hi Kowa,
  
  Yes, you absolutely right. Thank you for your detailed explanation.

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