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Dynamics 365 Community / Forums / Microsoft Dynamics SL (Archived) / P.O Setup Screen/Defau...
Microsoft Dynamics SL (Archived)

P.O Setup Screen/Default Unit Cost Setting

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Posted on by rapidcycler 200

Good morning all,

 
I have a question about the effect of the "Default Unit Cost" setting in the P.O. Setup Screen. We have noticed that when you select "Last Cost", if you make any changes on a purchase order in the receipt/inventory entry screen(04.010.00) , the price changes. When you select "Standard Cost", the price does not change, and when you select Average Cost, the price appears to be an average of cost...I know.. so what's my question? There is some question here as to whether the "last cost" setting is behaving as designed...
 
When making changes on the purchase order receipt/inventory entry screen,(04.010.00), and clicking into any of the other fields such as "QtyControl" the line item unit cost changes on the fly...but only when "Last Cost" or "Average Cost" is selected in the P.O. setup screen. If "Standard Cost" is selected as the "Default Unit Cost" then the line item unit cost remains the same as when the screen intially loaded. My question is simply, is this by design?
 
Thanks in Advance..

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  • Gail J-N Profile Picture
    Gail J-N 1,000 on at

    The Default Unit Cost controls which of three costs default from the itemsite costing record when a purchase order is created for an inventory ID in that site.      Regardless of the costing method employed, the last cost and average cost are always calculated at the item and site level.   The standard cost is only available if the item has a standard cost costing method.

    That being said, the problem with last cost is that pricing on a receipt can be very volatile with spot buys, quantity purchase variations, etc.    When we first started using purchase orders in Dynamics, we used "last cost" as our Default Unit Cost, but speedily changed over to "standard cost".    Our buyers were instructed to update the pending costs frequently.   The problem with that was that if the price didn't take effect for awhile and standard costs weren't rolled over frequently, then the pricing on the PO was off, since it pulls in current standard costs, not pending standard costs.

    So we were delighted when we bought the MaxQ supply chain planning module and found that it shipped with a "Vendor Pricing" module which is modelled after the sales order pricing module.   It allows us to enter quantity break pricing by vendor by item, and this flows automatically onto the purchase order.   If there is no vendor pricing loaded, then it still defaults to our Default Unit Cost setting - which is standard cost.

    I don't know if that module is available by itself, but it sure has helped us out!

    Hope this helps.

    Gail J-N

     

  • rapidcycler Profile Picture
    rapidcycler 200 on at

    Hi Gail,

     

    Thanks so much for your reply. The issue we're facing is one of behaviour of the app... If I pull up a purchase order, all the line items are displayed. If I delete a few and change the quantity of one that's left, when the app is set for last cost, the price changes to the last cost value on the p.o screen. It happens in our production 6.5 environment and our test 7.0 environment as well. So I'm think this is by design. Does/ did this happen to you?

     

    Thanks,

  • Gail J-N Profile Picture
    Gail J-N 1,000 on at

    I assume what you're talking about is that when you pull up the PO Receipts screen (04.010) and enter a PO number, the detail lines on the receipt are populated with the quantity remaining on the PO for each item as well as the PO Price.    If you delete off lines on the receipt and update a quantity, then save, are you saying that you believe the original purchase order is updated at that point?    That is not my experience.   Changing the quantity or price on the PO Receipt does not update the purchase order directly.

    The Itemsite & inventory records are updated for the last cost and average cost when the PO Receipt batch is released and posted.   Also, the quantity received info on the Purchase Order is updated by the PO Receipt batch.

     Or are you saying that when creating a PO Receipt by entering a PO, and then changing the quantity on a receipt line,  the receipt price changes to something different than the Purchase order price?   That is also not my experience.

     If you can provide a few more specifics, I'll look into your problem further.

     Gail J-N

  • rapidcycler Profile Picture
    rapidcycler 200 on at

    Hi Gail, I am speaking of the first scenario. It does not happen with all items and I am hard pressed to figure out which items cause it to happen and which the price remains the same.

     

    Scenario...

     

    Launch "Receipt/Invoice Entry(04.010.00)

    Enter a P.O. Number

    The p.o. number populates the detail lines.

    Delete all but one detail line

    Change the quantity.

    click in another field ( such as Qty. Control)

    The unit price changes on the screen....

    However, like I previously mentioned, it does not happen with all items. Some items change, and others do not. I have not been able to determine why some items change and others don't.

    This happens when the Default Unit Cost in "P.O. Setup" is set to "Last Cost"  OR "Average Cost"... If the Default Unit Cost is set to Standard Cost, the price never changes.

    If the Default unit cost is set to "Average" then the cost ALWAYS changes, even on those that it does not change under last cost. In a way, this makes sense.. as an item will always have an Average cost, while the last cost may be the same as the standard cost.

     

    Thanks,

    Andy

     

     

     

     

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