On a reasonably regular basis, your Manufacturers may supply a price update. When this occurs, there will undoubtedly be purchase orders which have not yet been fulfilled.
When the outstanding purchase orders arrive, the Manufacturer may dispatch and invoice at the new prices based on the latest price update.
These orders will have been created on the system based on the previous price list and would, if not altered, be receipted at what are now out-of-date costs.
The quickest way to update the prices held against outstanding orders is to use the Re-price purchase orders option.
To Reprice a Purchase Order:
The PURCHASE CONTROL Menu is displayed.
The Reprice Purchase Order Form is displayed
The Reprice Purchase Order form is displayed when you select the Reprice Purchase Orders option from the PURCHASE CONTROL Menu. From this from you can reprice purchase orders.
The Manufacturer's Price Update may be run against the stock file but will not update purchase lines already outstanding. This may mean that Purchase Orders not yet received will be invoiced by the Supplier(s) at the new price, and that the order lines will be set to the old price. The purchase lines will therefore need updating to reflect the price changes before the goods are receipted.
It would be laborious and, in some cases, impractical to check and adjust the price of the parts on every order at the time of receipt.
In order to assist with this revaluation of orders, it is possible to run the Re-price purchase order option against the Purchase File, which will update the order prices with the updated information from the stock file.
To Reprice Purchase Orders:
Order number: Enter the order number to be re-priced.
Tip: There is a search option for the Order number click the Ellipsis button
. Select the appropriate order number.
RADIO BUTTONS:
Change cost prices: Click to change only the cost prices of the Purchase Order.
Change cost and retail prices: Click to change both cost and retail prices of the Purchase Order.
PUSH BUTTONS:
Exit: Returns you to the main Purchase control menu.
Help: Displays help on the current application in your default company browser.
Reprice: Update prices on the order from the stock file.
When the re-pricing is complete, the system will display the new value of the order.
Tip: It is important that orders are re-priced before receipt to ensure that the Average Cost Price of the part is correctly calculated and that the verification of the Supplier's invoice is straightforward.
Note: Remember that incorrect average costs held against the part will reflect incorrect profit margins at the time of sale of the part.
