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Vendor Invoice and Our Invoice - Price difference upon receiving

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Posted on by Tris15

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Hi All

How do we handle the following scenario in BC:

We raise a Purchase Order for qty 10 at R100, the stock comes and we receive the items into stock via a warehouse receipt, but the vendor attaches their invoice for qty 10 at R110

We do accept the items at this price after raising the query, but how do we then go about rectifying the PO to account for this Price change?

Regards,

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Dynamics 365 Business Central

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Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

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Hello,

Steps to Rectify the Purchase Order Price Change

Update the Purchase Order:

Navigate to the Purchase Orders page.

Locate and open the relevant Purchase Order.

Update the Unit Price field to reflect the new price (R110).

Post the Purchase Order:

After updating the price, post the Purchase Order to reflect the changes in the system.

This will ensure that the updated price is recorded in the Purchase Order and the associated financial entries.

Create a Purchase Invoice:

Go to the Purchase Invoices page.

Create a new Purchase Invoice and use the Get Receipt Lines action to pull in the received items from the Purchase Order.

Ensure that the Unit Price on the Purchase Invoice matches the updated price (R110).

Post the Purchase Invoice:

Post the Purchase Invoice to update the vendor's account and reflect the correct cost in your financial records.

Adjust Inventory Costs (if necessary):

If the inventory cost needs to be adjusted due to the price change, use the Adjust Cost - Item Entries batch job.

Navigate to the Adjust Cost - Item Entries page and run the batch job to update the inventory valuation.

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Ramesh Kumar 7,527 Super User 2025 Season 2 on at

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e difference in price (R10 per unit) will be accounted for in Business Central as a price variance. This will ensure that the correct amount is posted to the general ledger for the extra cost.

When the purchase invoice is posted, BC will calculate the difference of R10 per unit.

The system will create an entry in the purchase price variance account, which will reflect the difference between the ordered price and the invoiced price.

Thanks

Ramesh

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YUN ZHU 95,593 Super User 2025 Season 2 on at

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Just change the price on the invoice from 100->110, then post. The purchase order does not need to be modified. This will not affect the financial data.

And this is the standard procedure.

Hope this can give you some hints.

Thanks.

ZHU

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Khushbu Rajvi. 20,439 Super User 2025 Season 2 on at

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If this helpsL:https://community.dynamics.com/blogs/post/?postid=3e3e86d3-18d9-47f9-b90e-f235a8befcf8

https://community.dynamics.com/forums/thread/details/?threadid=24f3de94-ec9f-40bd-bbfb-26b0790d99c3

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