We are implementing Epicor and because of steel material pricing each PO release could have a different price. Has anyone else ran into this and how do you handle it?
We put a PO out to a Mill for thousands of feet of material and then receive in releases weekly/monthly. Updating the PO price manually at the time of shipment seems like it will be a lot of work.
Any input or thoughts?
There’s a company configuration setting that allows you to update pricing directly on the Receipt in Receipt Entry. We use this for the exact reason you stated: steel pricing is variable until it’s shipped, and we’re charged additional fees for storage and slitting/processing. Instead of having Purchasing un-approve, update, and re-approve every PO for steel, we allow some receivers to update the price according to the packing slip.
Does this show up as a purchase price variance then? We have the same situation with installation labor from a 3rd party contractor. It’s often different than the estimate which was the amount used for the PO.
I haven’t followed up with our purchasing team but as far as I know, the material is received into inventory (or the expense account or WIP or whatever) at the price used on the receipt. So when the invoice comes in at the same price as was listed on the packing slip and that the receipt used, there is no variance.