A customer recently contacted us to inquire about options for changing how GP comes up with the Unit Cost on a Purchase Order. They use GP Manufacturing and create Purchase Orders from Purchase Request Resolution (PRR). They had two issues they wanted to address: First, the PRR window does not show the Unit Cost, so they couldn’t see the cost and had to manually open and review each PO after creating it. Second, several of their Vendors add additional charges into the cost of an item to cover special fees. There were several sources of the additional charges, such as a rush handling fee, a commodity surcharge, and/or ordering a different quantity than normal and receiving (or not) a quantity price break.
Dynamics GP stores the last Unit Price paid for an Item in the Originating Invoice Cost field on Item Vendors Maintenance. Anything that causes the Receipt Cost to change will be reflected in the next PO. In the case of the additional surcharge, this can result in a upward spiral in the cost when your Vendor takes the Unit Cost from your PO, adds a surcharge, which becomes the Originating Invoice Cost when the PO is received, which becomes the next Unit Cost on your next PO, to which your Vendor again adds a surcharge….and so on.
The situation was frustrating for users, and was costing the company money when PO’s were released with an incorrect cost.
Fortunately we already had available several options to help them.
Another option comes from
The client had not considered the possibility that they could even have access to view and edit costs from PRR, so they were excited about Vendor Pricing. Not only did it give them the ability to prevent Unit Cost from changing each time they create a PO, but they could put a Vendor Price List into GP so the Unit Cost would automatically be adjusted for a given Quantity Price break.