PO Actual and Expect Cost

[jake29]

I have run into a situation where the user has reduced the Expect cost of an item in order to break it out onto a another line. The change shows correctly on the Purchase Order but I found that at the time of receiving the Unit Cost still shows as the original amount.

Looking at the Line and Line Audit tables I see that the Act_unit_cost did not get updated and I am assuming that is the field that the Receiver report is pulling the Unit cost value from.

Is the by design, user error or a bug?

Any ideas?

Jake

 

[dgillz]

What does "reduced the Expect cost of an item in order to break it out onto a another line" mean?

The "another line" comment confuses me. Please elaborate.

If you simply changed the unit cost of the po line item, then the subsequent receipt of that line item should be at the changed cost.


Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"making predictions is tough, especially about the future" - Yogi Berra

 

[jake29]

Say the PO has a line for a gadget priced at 200 and as it turns out the gadget is a collection of items. For whatever reason they decide to break those items out on the PO. We can do this because we do not have a set inventory and use generic item numbers that could represent 50 items.

They reduce the cost of the gadget line item to 150, create a new line for 50.

The expected cost field for the original line does changes to 150 but the act_unit_cost stays at 200 and this appears to be what is displayed on the Macola Receiver Report.

During the receiving process this amount can be change but causes problems with the G/L

 

[dgillz]

When you say generic item numbers, please clarify: Do you have a real item number in your item master for this? If you do not, you will be getting the message "Item no not on file - do you still wish to order it?" every time you enter a PO line.

If the answer above is yes, then I strongly suspect that your costing method in IM setup is set to standard. If this is the case, the system is working as designed.

Please explain the GL problems caused when you reduce the cost at the time of PO Receipt.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"making predictions is tough, especially about the future" - Yogi Berra

 

[jake29]

The problem is the we have an account, everyone might I do not know, 7014 PPV and is used to show what has been received but not invoiced. 7014 gets credited and the 3015 gets debited.
If the amount is changed at the time of receipt they do not match.

Yes we are using Standard.

 

[dgillz]

Yes, this is working as designed. When you receive an item you debit the inventory or expense account that the item is set up for, at standard. If the expected PO cost is different from standard, then Macola properly records a PPV entry.

When the item is vouchered, the rec'd but not vouchered gets relieved, and if the voucher if for yet a different $ amount, you will get even more PPV.

So whats wrong with this picture? Are you on standard cost, yet you do not want to record Purchase Price Variance?

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"making predictions is tough, especially about the future" - Yogi Berra

 

[marixb]

Hi, Did you ever solve this? I have just come across similar situation.
Buyer changed Cost on a PO line, and the receiver took the first cost as the unit cost.
The expected PO cost is supposed to reflect the Location cost, in our case, the Last Cost. The Actual cost on this PO is what the Buyer changed. There is no way on the PO that the Expected Cost can be changed. When I look at the PO line file, The expected Cost is the one that changed...This makes no sense...
However, I notice that there was a partial receipt before the Buyer changed the Cost..Is this the cause???

 

[dgillz]

I just tested this and a change in the cost on the po does indeed change the expected cost on the PO, and the receiver default cost is equal to the PO cost. This appears to be working as designed.

Nor could a partial receipt before the PO was changed cause me any problems. I am using 7.6.400.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"A fine is a tax for doing wrong. A tax is a fine for doing well.
" - unknown

 

[marixb]

Thanks for your input. I have tested this also and cannot recreate this situation. I can see on the PO audit where the actual and expected costs are different..I am putting this one in the Mystery file. Purchasing is telling me they "see this alot". I don't think so..if they get me another example , I'll be in touch.
thanks again.