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I am looking for direction on how to set the system up to allocate costing accurately when we have to order in batch qtys. For instance, our supplier sells the part in boxes of 100. We have to order from the supplier in eaches, so we order 1 box from the supplier. When we receive it into inventory, it is received in as one box. How do we reconcile this when we begin utilizing this material in work orders, shop orders etc? We want to be sure that the costing works appropriately and that we are only allocating cost for the portion of the material that we use. 

 

Is there a way to purchase in box qtys, but receive in single qtys for costing purposes without messing anything up? 

Hi,

On your Supplier for Purchase Part record you have the ability to have an alternate Purchase UOM to the inventory UOM, to reflect the UOM you buy the item in. In your example above you would have the inventory part UOM as ‘pcs’ / ‘ea’ and then on the associated SFPP record the ‘Purchase UOM’ would be ‘BOX’. You would then need to define the conversion factor between the two (in your example conversion factor would be 100 to represent 1 box = 100 in inventory.)

When you raise the Purchase order it will use the Purchase UOM on the order line i.e. 1 box however when you register the arrival, the system automatically recognizes that 1 box equates to 100 individual items and books 100 into inventory, so what you will see in your IPIS is a qty of 100, and this is what will be utilize on your work / shop orders as the inventory UOM. 

From a pricing perspective you can also define if the pricing should be per box or individual and apply the relevant information in the Price UOM and price conversion fields on the SFPP record.

I hope that helps and answers your question

Kind regards

Deb

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