Purchasing Pricing
Purpose
Suppliers often have different Item id's, descriptions, unit of measures, 6 items in a package and we sell them by item. A price per 100 items in a box, so you need to enter the price with fraction of hundredth's. All this can be done here.
Navigation: Items and Inventory => Purchase Pricing
Procedure
Supplier Pricing
- Supplier: For every Item you can have one or more suppliers for this particular Item (chosen at the very top).
- Price: This is the price for the suppliers unit of measure (UOM). If he sells in boxes of 6 this is the price for 6 items. For instance 60.00. The Price can have up to 6 decimals. This will follow the price on all the documents and forms. So you can have fractions of your hundredth's currency in the price. This maybe useful if you buy huge amount of items from your supplier, and his price is a fraction of the hundredth's. For safety, if you need to increase an existing price with more decimals, please delete the item first and then re-create with the new price.
- Suppliers UOM: In our example it could be the factor to convert to 'box'
- Conversion factor: This is normally 1.0000, but in our example it is 6.0000 ( there are 6 items in the box)
- Suppliers code and description: The supplier may have another code and description for the Item.
In Purchase Order Entry, when you select an item with a conversion factor, the quantity changes from default 1 to default conversion factor (6).
The Price is calculated per item, 10.00. This way you can easily see that this item has a conversion factor, and if you want more you should select a multiple of the conversion factor.
When printing the Purchase Order, the quantity is changed to 1 box (if you ordered 6 items) and the price is 60.00. And the code and description is changed into the suppliers code and description.
When receiving the items it is shown in our UOM and price but with the suppliers code/description. This can be overwritten. The description is updated into the Purchasing Pricing for this item.
This makes it easy for you the next time you order again.
And finally the supplier invoice contains the same info as the receival and the price can be changed, in which case the purchasing data is updated again.