Incorrect direct unit cost calculated on PO and Req worksheet for UOM

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Posted on by NinaMendes

Scenario:

Item X has a default vendor (Vendor V)

Item X UOM: Case is made up of 8 units

Purchase price for UOM: EACH for Item X and vendor V = 2.23

Purchase price for UOM: EACH for Item X and vendor Y = 2.63

Create PO for vendor V

PO line contains item X for 1 Case -> system calculates the Direct unit cost as 2.23 x 8 (correct)

Create PO for vendor Y

PO line contains item X for 1 Case -> system calculates the Direct unit cost as 2.23 x 8 (Incorrect)

My expectation is system uses the purchase price for item X and vendor Y = 2.63 and then multiply that by 8

Has anyone else getting this error? or am I missing something? There is no customization.

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MahGah 15,529 on at

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Hi

When you mentioned your setup do you mean you went to Item Card and defined price for each Vendor like below. Or since you bought from vendor before you want to BC remember price for each vendor?

Last Direct Cost is always the last invoice (or sometimes transaction such as Positive/negative / depends on costing) price. if you bought the item from vendor Y last time then last direct cost is the vendor Y cost. In order to avoid this you can try setting up price for each vendor in item card.

Please test and let us know the result.

Thanks

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NinaMendes 20 on at

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Hi Mahgah,

Thank you for the reply.

I have setup the purchase prices for each vendor as you shown. system is calculating the UOM case correctly for item X and vendor V combination.

But it is displaying the same calculated price for UOM case for item X vendor Y combination although the price for vendor V item X combo is different for each unit.

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MahGah 15,529 on at

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Hi

A few questions

1) In the price setup for item card what do you have as min QTY? I mean if Min QTY for vendor Y item X is greater than QTY in PO then BC default to last direct cost.

2) I assume that Purchase Unit is Case and for both vendors UOM in Price setup is UOM as well.

3) My assumption is you have checked the start date and end date in Purchase Price and then your PO is in this date range.

3) If you create new PO for Item X vendor Y do you get the correct price or price is wrong?

Thanks

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Dallefeld 211 User Group Leader on at

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Do you have any apps installed?

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NinaMendes 20 on at

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Hi,

1) Yes min qty is set to 1 and the qty on the PO is 1

2) I have not set the Purchase price for both vendors for UOM case. Only setup the purchase price for UOM EACH for both vendors

I have tested a little by adding the Purchase price for UOM Case and system is populating the correct unit price on the PO

If I remove it, it seems to be pulling the price from Last direct cost from the item card

3) If I create a new PO for Item X and Vendor Y for UOM Each I get the correct price

If I create a new PO for Item X and vendor Y for UOM Case I get the correct price (but I get the correct price if I setup purchase price for UOM Case)

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MahGah 15,529 on at

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Hi

Thanks for info.

UOM and purchase price have direct relationship with each other. Basically for price you have to define UOM. If you do not do it then basically BC default to last direct cost. Hence, in purchase price you need to add UOM. Also, you can add more than one UOM for instance vendor Y will have price for UOM Case and EA and this way when you change the UOM in PO then BC will uses different price.

What is your Purchase UOM in Item Card under Replenishment?

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NinaMendes 20 on at

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Purchase UOM is EACH on the item card.

I see, I was expecting system to calculate the Direct Unit Cost on PO line based on the base UOM multiplied by UOM: CASE qty per unit of measure.

At the moment, System seems to be using the last direct cost on the item card and multiplying that by the UOM: CASE qty per unit of measure.

Based on what you are saying, I need to define the purchase price for vendor/item/UOM combination not just vendor/item combination for this scenario.

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MahGah 15,529 on at

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That is correct. BC does it right now only based on last direct cost. But since you need a different purchase price for each vendor then you need vendor/item/UOM combination. basically when you pass one vendor you need that combination.

Back to requisition worksheet just keep in mind that BC will select the vendor that defined in item card as a vendor and then you need to change the vendor to see the correct purchase price.

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NinaMendes 20 on at

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Thank you so much for your help!

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