Question

Variable part costs per varying supplier prices

  • 24 September 2021
  • 2 replies
  • 63 views

Userlevel 1
Badge +2

When Suppliers are charging different prices in different times, how can multiple costs be maintained for the same part in the system. 

Can somebody help with detailed explanation of maintaining variable part costs in the system. 


2 replies

Userlevel 2
Badge +1

Hi Kithmini,

As per my understanding we can use the Supplier Agreement window to check,enter and maintain costs related to a specific part .

There is a variety of opportunities for entering the supplier agreements.

 By choosing among the different options, such as defining time periods, using multiple sites, adding purchase parts and/or supplier assortments, defining price details in a hierarchical manner.
A supplier agreement can have the following statuses: Planned, Negotiate, Active, Closed, and Canceled.

When it comes to your question the period is the basis :

Storing the cumulative quantities and amounts that are used when checking for step pricing.

You can define one or several periods for which the supplier agreement is valid with specific price.You enter a start and an end date, as well as a maximum amount for the supplier agreement. You can also see the current amount of all purchases during the period.

An entered period does not need to have an end date. If no end date is entered, the supplier agreement will be valid until further notice. Before a new period is entered, the previous period must have an end date, i.e., the periods cannot overlap each other in time. It is possible to enter periods that are not connected in time.

 

Hope this would help you,

Best Regards,

Chalani
 

Userlevel 4
Badge +6

Hi @Kithmini Gamage , according to my knowledge, you can use “Weighted Average” valuation method (nventory Part > Misc Part Info >  Inventory Valuation Method) for the inventory parts to accommodate your requirement.

When using this method, system will calculate a new average cost for the inventory part every time you receive the part. So  when you receive the part at different prices at different times, the average cost of the part will be adjusted accordingly.

Other than that, as per my understanding, we cannot have different costs per inventory part based on different prices offered by the suppliers (but you can have different costs for different cost levels - e.g. Cost per Lot Batch,  Cost per Serial etc. in Inventory Part > Misc Part Info > Inventory Part Cost Level if that can be used for your requirement).

Please let me know if this answers your query.

Thank you.

 

 

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