We went live on IFS Cloud about 4 months ago. I am looking for detailed information as to how the latest purchase price and average purchase prices are calculated in the system. Can someone walk me through it. Does it take into account Site to Site transfers when done on a purchase order at $0? Most of our parts are set up to be Standard Cost.
Userlevel 6
+14
The calculate purchase costs is a routine run in IFS. You can select site, latest or average. To my knowledge, it will calculate all purchase order lines. This is a historical view of the purchase order activities and will not impact your standard cost unless you copy the cost set.
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I know where it is run in the system, however, when I look at purchases, quantities, and cost values, I am not getting the calculation that the system is getting. I am wondering if someone can further explain, and specifically talk about whether or not the Site to Site transfers of parts are included in this calculation.
Hi,
How do you perform the site-to-site transfers?
If you used a traditional Purchase order without any special considerations - in my testing the 0 value PO did affect the purchase costs. My test may not represent your set up. My test simply used two suppliers where I ordered 10 from each vendor, one vendor was $100, the other was $0. Average purchase cost was 50.
A better test would be to replicate how you do your transfers.
I was unable to locate detailed documentation regarding the calculation formula. Still looking for that information.
Best regards,
Thomas
Hi,
I did not test all methods of site-to-site transfers. I focused on Distribution orders as they create CO / PO quickly. In my tests the distribution orders (even with 0 price) affect the purchase calculations. The purchase cost calculation logic is based on weighted average concept where a PO quantity of 100 has greater affect than a PO quantity of 10. In short it uses the weighted average cost type calculations. That includes internal type suppliers. Mathematically I was able to tie out the value.
Best regards,
Thomas
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