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PO with wrong costs

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Posted on by Moe1

Hi,

A PO was uploaded with wrong cost of $225K instead of $125K, this affected our margins. In a process to resolve the issue we did below workaround on test server but no luck:

We posted new PO with correct costs
GRN and landed costs were applied same as we do for other POs.
We posted PO with negative QTY but with costs same as wrong PO
GRN and costs were posted in negative to net off with wrong PO
We run “Inventory Recalculation” but we got an error “This inventory closing or recalculation has reached the maximum number of iterations. For a more accurate result, consider increasing the maximum throughput parameter.” So I increased the maximum throughput from 100 to 200 but again we got same error after running more than 3 hours.

Any suggestion to proceed further or is there a solution we can apply to neutralize this scenario?

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Ludwig Reinhard Microsoft Employee on at

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Hello Moe,

If you posted a wrong receipt transaction then you can directly make an adjustment in the inventory closing and adjustment form where you correct this receipt. You don't necessarily have to go through all of the correction steps that you executed. Maybe this is something you want to try next time.

What you can do about the throughput is increasing the amount probably from 1.00, to 5.00 or something higher. This gives less accuracy in the value calculation but I would expect that this is not a problem most of the time. Would be great if you could test this and let us know the outcome.

Best regards,

Ludwig

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guk1964 10,888 on at

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Has any other transaction happened with the item e.g. stock transfer, or issue to a sales order or production order?

Start again with a system refresh in your test system.

Reverse the original PO receipt i.e. with reference to the financial lot id.

Cancel any recalculation

Set maximum throughput much lower 20 is usually more than high enough for a component item.

Minimum throughput adjustment default is 1, increase it to e.g. 2, (this I think is what Ludwig is suggesting)

Run the recalculation again just for the specific item,( i.e. not for any boms in which it might be used.)

it might also be worth clearing the user cache.

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Ludwig Reinhard Microsoft Employee on at

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Hello Moe,

Have you been able to review the feedback provided?

Did you make some progress so far?

Would be great if you could keep us updated here.

Many thanks and best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hello Moe,

Have you been able to review the feedback provided?

Did you make some progress so far?

Would be great if you could keep us updated here.

Many thanks and best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hello Moe,

Have you been able to review the feedback provided?

Did you make some progress so far?

Would be great if you could keep us updated here.

Many thanks and best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hello Moe,

Have you been able to review the feedback provided?

Did you make some progress so far?

Would be great if you could keep us updated here.

Many thanks and best regards,

Ludwig

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Moe1 15 on at

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Hi,

Yes, we have a quite a lot of items that have been sold.

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Moe1 15 on at

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Hi,

Yes, we have a quite a lot of items that have been sold.

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Moe1 15 on at

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Hi. Ludwig,

With respect to this issue we resolved it through the following steps:

Step 1: Create a new PO with correct unit price on all the items, complete the GRN and invoice, by updating the date information as per PO_00000018.

Step 2: Create a new PO with negative quantity for wrong purchase price, complete the GRN and invoice, by updating the date information as per PO_00000018.

Step 3: Go to PO#PO_00000018> select one item line> Inventory option> Marking> Mark the negative PO against the item> Apply > Click ok

Step 4: Follow step 3 for all the individual line items manually.

Step 5: Now go to inventory closing and adjustment form> Click on recalculation> complete the recalculation for a specific item group or all the items available in the PO.

Step 6: Check if the item cost has been updated in all the following transaction after the correct purchase order.

Step 7: You can cross verify the cost correction through financial reports, with the help of your finance team.

We verified with the finance team and they confirmed the impact on CoGS and trial balance.

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