PO price change after receipt

Hi, 

Check the part set up to see the effects of the supplier invoice. 

If the part is set to consider the invoice value, IFS will manage the PPV (Invoice to purchase order PPV) by updating the inventory value and the value where the part was used (such as a shop order).    I’m not saying to use that option - a number of factors go into that decision.   Performance can be affected in some cases, and for this reason, it’s not something I can simply recommend. 

Look for this setting on the part. Supplier Invoice consideration - transaction based.  If transaction based is used (a very popular option for weighted average cost) the invoice PPV is managed.  In this case, you would not need to unreceive / receive at corrected price. 

Best regards, 

Thomas

I’ve been trying to resolve a workflow issue which relates to this post.

With the “Transaction-Based” configuration for “Supplier Invoice Consideration”, IFS dynamically updates the cost on the original purchase order receipt transaction, and that cost change is automatically cascaded through all subsequent inventory transactions associated with that receipt.

As a result, when an invoice is received with a cost different from the original PO price for a component that has already been issued to a closed shop order, IFS automatically reopens and recloses the affected shop order in the background to recalculate the finished goods cost and maintain inventory valuation accuracy.

However, this behavior creates a challenge when the shop order is linked to a project that has already been closed. The price variance generates additional financial transactions during the reopen/reclose process, but those transactions cannot be transferred to the General Ledger because the project is closed.

Due to this challenge, inventory parts were set to “Ignore Invoice Price”. However, this setting causes other complications when the invoice price is different that the PO price, as updates to inventory valuation are manual. Which causes strain on the AP group or procurement group updating the Part Cost manually.

It depends which department users work in to determine if the inventory part is set appropriately for “Ignore Invoice Consideration”. Neither is ideal, but another solution has not been found yet. Copilot seems to believe there is a configuration option for “Cost updates for closed shop orders”, and users can either enable or disable. I can not, for the life of me, find a field that resembles anything close to this on either the company or the site setting. 

The link for this comment actually is this post, which doesn’t discuss that option.

In IFS, if a part from a purchase order (PO) was already issued to a shop order before an invoice price correction, you can still push the cost difference to that shop order — but only if your system settings allow cost updates for closed shop orders 

Practical steps

1. Check system settings: Navigate to your IFS system configuration and confirm that “Cost updates for closed shop orders” is enabled.

If this field does exist in IFS, I would not enable (do not allow closed shop orders to be updated” and set the inventory parts to “Transaction Based” for “Supplier Invoice Consideration”. It would resolve issues with shop orders and projects, and update inventory valuation as expected for either price differences or unknown purchase charges.

If anyone knows of this “magical” field to allow or not allow cost updates for closed shop orders, please respond and I’ll owe you.

Thank you.