This chapter explains how PO-related supplier invoices are entered and matched with associated POs in the PO Invoices screen.
The matching process closes PO lines
The matching process is the means by which POs get closed. When each line gets fully matched, its Line Status changes to ‘Closed’. When all lines are closed, the header Status changes to ‘Closed’, which closes the PO and drops it from active screens and lookups.
Matching reviews supplier prices and balances your RNI account
The matching process enables you to review each supplier price to make sure you were charged the correct price. If not, you can contact the supplier and request a credit memo. Minor price discrepancies are common because PO prices are often approximate prices that may differ slightly from the actual price that is in effect at any given time. When a PO line gets matched with a discrepancy between the PO price and supplier price, the difference gets posted to your Received Not Invoiced account to keep it in balance, and the offset is posted to your RNI Adjustments account.
Matching optionally updates the item’s Last Cost
When you change the supplier price, you are asked if you wish to change the item’s Last Cost. Answer yes to the prompt unless the supplier price is a one-off price, such as for a rush shipment, that is not a typical price for the item. The Last Cost can be used to mass update estimated costs in the Estimated Purchase Costs screen and therefore should represent a typical price. The Last Cost is also used as the next PO unit cost when a purchase price record does not exist.
Update purchase prices as needed
Whenever the supplier price deviates from the PO price, we recommend that you update the item’s purchase price record for the benefit of future POs. To do so, click the Links button and select the Stock Items option. Within the Stock Items screen, go to the Sources tab to update the Supp Price.
Mass update your Estimated Purchased Costs based on Default Supplier Price
After any changes to your default purchase prices, you should go to the BOM>Estimated Purchase Costs screen and Mass Replace estimated costs using the Default Supplier Price. You should then go to the BOM>Cost Rollup screen and perform a batch rollup and apply the changes to your NEW status Jobs. It is important to actively manage your estimated purchase costs to improve your overall inventory value and cost of goods sold.
Inventory transaction costs do not retroactively reflect price changes
Be aware that when you change the supplier price, the program does not retroactively apply the corrected cost to past inventory transactions. Therefore, the matching process has no effect on item inventory values or job costs.
The key to improved inventory value accuracy is to always verify prices when you send out Purchase Orders
The best way to improve your inventory costs in your system is to always verify supplier prices when you send out your Purchase Orders. The PO Receipt value establishes inventory value and therefore the price on the PO has a direct impact on our inventory value and cost of goods sold.
|
|
