Question

supplier agreement

  • 8 April 2022
  • 7 replies
  • 340 views
M
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  • m.arif
  • Sidekick (Customer)
  • 107 replies

i am not sure if supplier agreement can help me in a scenario where we have to buy goods with supplier x and he has put a condition that starting may there will be a increase surcharge on invoices . we raise a purchase order for item a with 10 usd ,and item b with 10 usd, when he is sending the invoice it will come as 25 usd , with 5 being additional surchare as this is not based on product. How can i tackle this additional charges while booking manual supplier invoice. one way is to add additional cost element for these items a and b and do the part costing as we are usng standard part costing. Would like to know is there any better alternative solution.

7 replies

R
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Hi @m.arif, I’m thinking of creating a Purchase Charge Type for your supplier’s additional surcharge and connecting it to the Supplier / Purchase  / Charges tab. If this surcharge is for a limited time, you can enter a Valid To date in the Charge line. Then when you create a PO, this charge will be added in the Purchase Order / Charges tab. Thanks.

M
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thanks @Ravinatha Ariyarathna  , but we dont want to show this charges on Purchase order , how can i  handle this.

R
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Hi @m.arif, then I believe your thought of adding an Additional Cost in the Supplier for Purchase Part. In the case that the additional cost should be variable (quantity dependent), it shall be defined on the price list tab in this window instead. Thanks.

M
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thanks @Ravinatha Ariyarathna . Will it effect only during the Manual supplier invoicing time.

R
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Hi Arif, yes, it will only affect invoicing, but not the inventory cost and inventory value of the part.

M
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@Ravinatha Ariyarathna  , in case if i go by adding the purchase charge , will it effect part costing.

R
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No @m.arif, it will not affect the costing if it is a Standard Cost part. But if the part’s cost is Weighted Average and if you connect the charge line to the CO line, then it will affect the costing of the part.

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