Problem
A commodity has been billed at an incorrect
price, items have already been received in inventory, and may have been issued as well.
Step by Step Instructions
A purchase order establishes the unit cost of a commodity. The warehouse processes a RC (receiver) document when the items are received. This adds the commodities (stock items) to inventory at the purchase order unit cost. If the invoice and subsequent payment are for a different unit cost it causes the stock items to be incorrectly priced in the inventory.
The steps to correct the incorrect unit cost depend on two things:
1.) Whether the stock items have been issued or not.
2.) If the payment will exceed the variance tolerance of the purchase order. (Is the payment over the difference allowed between the payment and the purchase order.
Commodity has not been distributed and
allowance not exceeded:
1.) Pay
the PRC at the new price and it will update the unit cost on the purchase order. The change will update the unit for the stock items when issued in the future.
Commodity has not
been issued and purchase order tolerance exceeded (purchase order tolerance limit will not allow the PRC to process):
1.) Edit the purchase order for the correct unit cost
2.) Process the PRC
Commodity has
been issued and purchase order tolerance not exceeded:
1.) Complete
a SN (stock return)
2.) Pay
the PRC
3.) Complete a SRQ (stock requisition) to reissue the items
Commodity has
been issued and purchase order tolerance exceeded (purchase order tolerance limit will not allow the PRC to process):
1.) Complete
a SN (stock return)
2.) Cancel the RC (receiver)
3.) Edit
the purchase order
4.) Process the PRC
5.) Create
new RC (receiver)
6.) Complete a SRQ (stock requisition) to re-issue the stock at the correct price.