Purchase Orders...marking Complete overrides the Last Cost price (Standard) and enters a Last Cost Price (Discounted)

[gazmoz17]

Morning Bruce,

Doing my usual starting about 5 things and never completely finishing them

Do you know of a solution to this as sage aren't very helpful and don't know whether to investigate 3rd party software for raising our PO's.

We don't have our stock switched on so to speak (but prob will in the future). So all items are "Non-stock". However, have been advised that this doesn't have a bearing on my prob whether items ate Stock or non stock.

We have never set product discounts ever.

We re-value our stock per Supplier price files or advisory price increase letters, this is done csv import either once a month or at the moment due to mkt volatility multi-month imports/increases.

When I mark a PO complete the Last cost price Stnd is overridden back to the Cost price when the PO was raised. So it undoes the csv imports we have completed to account for price changes. Sometimes a raised PO can be sat for months due to mkt shortages, therefore cost price its overridden could be way off current cost price. Eg were in July PO raised in Feb may have had 7 diff import increases during that time, but now that product will display Febs price per cost price when PO was raised in Feb.

Its completely untenable going forward. A marker which shows this has happened is for some reason not only is last cost price standard overridden but Last Cost Price (Discounted) becomes populated with same figure as Last cost price Standard....price when PO was raised.

This obviously knocks out all our profit reports as margin is being worked from PO price not current per supplier increases and subsequent imports.

Thanks
Gareth

[brucedenney]

You are going about solving the problem the wrong way.

What you need to do is set up a supplier price list and import your prices to that.

As for profitability, if you bought at £3 sold it for £6 and the current cost price is £5 then you profit is £3 not £1.

The profitability reports have 2 different methods. Because you have very variable product costs, you should be using the one that is based on the stock transactions, not on the stock records. IE one that is based on the actual price you paid for the item when you bought it rather than the price now.

[gazmoz17]

A little bit of knowledge (on my part) is a dangerous thing!

Our MD doesn't want stock "switched on". So all our prods are set to Item Type: Non-Stock.....because of this Sage told me my profit reports would always have to be based on cost price in the stock record "Last Cost price (Standard)". And therefore, would never really be correct (with us revaluing all stock beginning of the month on back of supplier price files). Due to constant increases & us changing the last cost price standard in stock record really were sat on stock which was bought at lower price & haven't even purchased yet at the newer higher price. Therefore, most of the time our profit reports are conservative. We decided to revalue straight away due to multi month increases and to know where we were price wise in the mkt rather than the opposite and think were making more than actually are.

So are Sage wrong and can keep stock "switched off" and can still pick up stock transactions so cost price is relevant to time of purchase?

Question 2

If import into Supplier Price lists. Raise a PO which is raised in Feb for £2 and still sat there in May awaiting delivery. Between that time we have imported 2 updated price files and supplier price list is now £4 for said product. Arrives in May and we mark complete would it value that stock at £4 per Supplier price list (imported supplier price files) or at £2....e.g. is it like sales order changes where some times you have to refresh the sales order by re-entering ac code/name to pull though current prices.....

.....suppose this is linked to the answer to the non-stock question.

Thanks

[brucedenney]

Without stock turned on, you have no stock transactions, there is no record of how much those cost and this is why in those circumstances you need to use the inferior and potentially inaccurate last cost price off the stock record.

You could turn on stock and allow negative stock.

In the scenario you present, when the goods are delivered into stock, the price on the stock transaction will be set to whatever price you actually paid (from the purchase order) this will also set the last cost price as this is the last price you bought the item for.

You could, import a "notional cost price" into a spare field in the stock record, and then rework the profitability report so that rather than using the last cost price to value things it uses your notional cost price form some other field. I have done this for customers who have significant import duties and shipping costs that need to be reflected in the cost price but are not on the PO

[gazmoz17]

Thanks Bruce, think just have to get the stock switched on....for other reasons as well down the line, re-order levels etc. When we start selling kits I think will be too hard to check the stock BOM sub component stock levels the way we do things now anyway. I know there would be a learning curve booking stock in etc.

Why the MD doesn't want stock on is also we have an element of waste decanting barrels into kegs of resin etc. Also feed stock products that come in labelled as Prod Y and we just relabel them to become Prod Z to sell out, I'm guessing we would have to book in Prod Y, book it out again, then book prod Z in to sell?

Get the notional cost but I'm running out of spare fields and think it would be too messy. When quoting on the fly were too stuck in our ways adjusting quotes on the fly from Prod module looking across to Last Cost price (std).

My "Question 2" question, what is the answer please to that if we had stock switched on basing on stock transactions. Would it pull through £2 or £4? Will it always be based on Supplier price list at time of marking complete regardless of PO cost price when raised )POP_Item.Foreign_unit_price). Or will PO need changing/refreshing pull through Supplier Price list cost price.

Thanks

[brucedenney]

Product X becoming product Y can be done with a BOM and a stock transfer.

Question 2

The last cost price will always reflect the last price goods were delivered into stock at.
The cost price when you raise a PO will be determined by the supplier price list.