Question

Update inventory transaction after change of price on PO

  • 19 January 2023
  • 5 replies
  • 300 views
M
Rank
Userlevel 2
Badge +7

Hello, 

Whenever my customer receives a supplier invoice, before registering, she checks that the unit price on the purchase order is the same as invoice; if not the case, then they reopen the article line on PO to change price and close it again so that the right price gets mapped on the invoice. She prefers to proceed in this way rather than registering price difference on invoice.

 

But when the arrival of PO was registered, it has been done with the initial price of PO (and not the updated one), so the inventory transaction showing a debit of M1 and credit of M10 are created with initial price and then transferred to accounting/ finance with a daily task; their status is “transferred”, code 3.

How can i proceed with an update of these transactions on ARRIVAL event (M1 and M10) after having changed the price on PO line, so that finance gets updated too?

 

Thank you

Tanya

5 replies

cperdue
Rank
Userlevel 6
Badge +14

You should review the point of ownership settings as well as these site settings.  

 

Best- Christy
G
Rank
Userlevel 6
Badge +19

Hi

You must set up your inventory valuation method correctly.

Navigate to inventory part and set your valuation method weighted average. And supplier invoice consideration must be Transaction Based.

 

 

After this setup, whenever you have a difference between PO value and invoice value IFS will correct M1 and M10 transactions with the difference amount from invoice. This transactions are called revaluation transactions in the system and you can see them both in Distribution and Manufacturing Posting Analysis and Transaction Revaluation Events.

Hope this helps

https://superp.solutions/
M
Rank
Userlevel 2
Badge +7

Hello, thank you for your reply.

 

Just checked, this set up is already implemented in the site and inventory part level (transaction based + weighted average). My customer is found in France and postings differ a bit since we have to register charge once purchased parts are received. Here is a short insight of how the setup is made :

 

Ex PO is registered for 4K and invoice says 5K

  • ARRIVAL event = dr M1(stock) and cr M10 (Suppliers Invoice Not Yet Received) for 4K
  • The M10 triggers an automatic posting rule where we debit cost account and credit stock variation account for 4K

Then invoice is received from supplier for 5K - the PO unit price is changed to align with invoice and then invoice is created = no price difference is registered since PO is modified with invoice price. 

Postings when registering invoice are then :

 

  • Dr IP5 (Supplier invoice not yet received) for 5K
  • Cr IP1 (supplier) for 5K 

So the charge, stock and variation account are under evaluated by 1K and 1K is missing from M10 to create balance between M10 and IP5.

 

Does the revaluation event you are talking is the PRICEDIFF when registering invoice with difference? or is there another event which i should check ? 

 

I would like to modify / update the ARRIVAL voucher with the right amounts when the PO unit price is modified, even if the transaction has the “transferred” status on the inventory transaction page - do you think that it is possible? 

 

Thank you both for your help 

Tanya

 

 

 

 

 

A
Rank
Userlevel 7
Badge +16

Hi, @MelTanyaS ,

If the “Supplier invoice consideration” for your part is set to “Transaction based”, you will see additional couple of postings added to your ARRIVAL transaction (in your example 1k booked Dt M1 Ct M10) which in turn should trigger the same APR original M10 posting did - and will adjust chanre account accordingly. 

Regards, Adam
G
Rank
Userlevel 6
Badge +19

Hello, thank you for your reply.

 

Just checked, this set up is already implemented in the site and inventory part level (transaction based + weighted average). My customer is found in France and postings differ a bit since we have to register charge once purchased parts are received. Here is a short insight of how the setup is made :

 

Ex PO is registered for 4K and invoice says 5K

  • ARRIVAL event = dr M1(stock) and cr M10 (Suppliers Invoice Not Yet Received) for 4K
  • The M10 triggers an automatic posting rule where we debit cost account and credit stock variation account for 4K

Then invoice is received from supplier for 5K - the PO unit price is changed to align with invoice and then invoice is created = no price difference is registered since PO is modified with invoice price. 

Postings when registering invoice are then :

 

  • Dr IP5 (Supplier invoice not yet received) for 5K
  • Cr IP1 (supplier) for 5K 

So the charge, stock and variation account are under evaluated by 1K and 1K is missing from M10 to create balance between M10 and IP5.

 

Does the revaluation event you are talking is the PRICEDIFF when registering invoice with difference? or is there another event which i should check ? 

 

I would like to modify / update the ARRIVAL voucher with the right amounts when the PO unit price is modified, even if the transaction has the “transferred” status on the inventory transaction page - do you think that it is possible? 

 

Thank you both for your help 

Tanya

 

 

 

 

 

Hi Tanya,

Revaluation event will not create PRICEDIFF, it will create additional rows on your original ARRIVAL transaction. You can see new rows on Accounting tab of Inventory Transaction History window for your transaction.

 

Unfortunately you cannot update ARRIVAL voucher. The status of the inventory transaction is not issue here. Whether transferred or not, it is not editable. You can just add new values with revaluation transactions or cancel the receipt and make receipt again if you changed PO price.

 

Hope this helps

https://superp.solutions/

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