I was under the impression that if the item cost on an AP invoice differed from the items “current” cost, there would be a cost adjustment.
But after some testing (on parts with AVG and LAST cost methods), I see that it mearly makes a GL tran between a variance account and the Accrued Receivables.
Will any type of AP invoice processing ever change the cost of the part (actually affects the PartCost table)?
If so what conditions are required for this to happen?
If part cost is never updated from an AP Invoice, what do others in the situation where the wrong cost was on the PO, and the right cost on the AP Invoice?
Manually do a Cost Adj of the part, with a reason code that offsets the variance created by the ADJ-PUR?
We use Average costing for our purchased parts. When I look at a part in Part Transaction History, I can see an ADJ-PUR transaction for the difference in cost (which would be the variance) but it doesn’t not affect the material cost at that point. I see the AVG cost being used when the parts are transferred from bin to bin and when the material is issued to the jobs. The AVG cost in Part Tracker is showing the AVG cost of the material on hand only, not the average cost of all purchases of this material. Here is a snip of the part in Part Transaction History Tracker:
If you look at a PUR-INS transaction in the middle the screen, you see that the material is costed at the PO price of 3.55 per lb. It has the same cost when the material is taken to stock in the INS-STK transaction directly above. Not far above that is a transaction of ADJ-PUR for .36. This adjustment changes the cost of the material and you see that as the material is moved from bin to bin and finally issued to a job (you can follow it by looking at the Lot Number reading from bottom to top). It changed from 3.55 to 3.54849. Had this been the only lot of this resin in Inventory at the time, my AVG cost in Part Tracker would show 3.55 before the invoice was input and 3.54849 after until the material was issued.
If I run the WIP/Recon, the ADJ-PUR trans only hit the Accrued Receipts, and a Variance account. Nothing to Inventory.
Your PartTran history even shows that there is no change to the cost after an ADJ-PUR tran. See how the Mtl Unit Cost is the same after the ADJ-PUR tran.
