Controlling updates to costs from purchase receipts and invoices

Overview

When you complete a receipt or finalise a purchase invoice a popup window "Complete Purchase" displays with a number of options. One of the options is the "Cost update mode". By default your costs are probably set to update automatically. You may get cases, such as when goods are provided at a special price from the supplier, where you do not want to update your standard cost for the product. The problems that can arise from updating your cost based on a supplier special price include:

• As you don't want future purchase orders to use the special cost. But if you update the cost, that cost will be used on your next purchase order to the supplier
• If you markup sell prices from cost, the markup/gp will be retained. This means all the cost saving from the special cheaper buy will be passed on to customers. You normally want to keep the extra profit in your business by not updating the cost. Any sell prices that are calculated from cost or gp % will not update.

Changing standard cost update procedure for one purchase invoce

Just change the "cost update mode" to "Do not update costs"

Setting the default cost update setting for all purchase invoices

You can set your system to automatically update costs, not update costs or update only cost increases. This default setting will apply on all future purchase invoices unless someone manually changes the default option for a particular purchase invoice.

System reference settings can be used to set the default behaviour for purchase invoices. From the Navigation panel, select administration, then advanced, then system types. Select the "Record defaults" system type. Set the value of the system type "PurchaseInvoice.CostUpdateMode" to Updateallcosts,Updateincreasedcosts or Donotupdatecosts. This will set the default value on the update costs pull down list on all new purchase invoices. See,Record defaults system type