Add user option which allows selection of unit cost (standard, average, last, etc.) to be used on PO's regardless of item's valuation method.
by: Larry E. | over a year ago | Sales & Distribution
Votes
28
Add user option which allows selection of unit cost (standard, average, last, etc.) to be used on PO's regardless of item's valuation method.
by: Larry E. | over a year ago | Sales & Distribution
Comments
This would be a great addition for the purchasing staff. Defaulting unit cost based on the costing hierarchy for the valuation method of the item makes no sense. Regardless of how you account for the value of an item, purchasing staff generally want to see last cost or standard cost default in the PO, in the absence of a vendor price level. Especially annoying and entirely useless is what Average Cost valuation method users have to put up with. In their case, the average cost of the item is the default unit cost in PO Entry. When will you ever pay a vendor your average cost for an item you buy from them???
Great point, Jeff. To have Avg. Cost as the default for the Item price in PO is just looking for errors in COGs calculations and unnecessary adjustments made to the Inventory Valuation to offset the errors. We have been dealing with this same issue for years with some clients.
We've built a solution that starts to address this. It uses the item's standard cost as the cost on POs. It can be turned on for all items, or for specific items. If you want more details, take a look at our blog posting: http://blog.masguys.com/2011/06/17/po-standard-cost/
My comment too! The way it is set up makes no sense.
If the inventory continues to be pulled by the last value and not the value specific to the serial number, then I need the ability to adjust the item cost in sales order.