Orders shipped prior to price settlement

dwolfe

Member
We're in a commodity business where the price of the material we're selling might not be known until days or weeks after the material ships. Optimally we would like to:
ship confirm
process sales update with current costs and prices
hold off on invoicing until pricing settles
once market settles, update transactions with new cost and price and have it all come out nice-nice through some type of sales update
invoice

Since I don't think there is anything like this, I think we'll end up just holding off on ship confirm until after the market settles. Just thought I would check with y'all first.

Thanks
 

Frosty the Coder

Legendary Poster
The site I am at invoices based on the daily market price averaged for the past calendar month.
They issue a credit for the original shipment and rebill once the new price is known.
I don't know whether that helps with what you are doing.
 

RussellCodlin

Reputable Poster
If you need to run full sales update then you'll need to run invoicing first which effectively means the transaction has been passed from sales through to AR. If that is the case then the method that Frosty mentions is going to be the sort of approach the business would need to take. Otherwise, if you can hold off invoicing and sales processing until the price is known then you can automatically reprice the order as part of the invoice generation by triggering R42950.
 

Larry_Jones

Legendary Poster
Sounds like knowing your on-hand balances isn't important to your company.
Given that, if you Ship Confirm without updating inventory (Processing Option) you can later run Sales Cost Update (R42950) to update Costs and Prices followed by R42997 to Update Inventory, etc.
How you keep track of when your costs "settle" by Order must be complicated.

Good Luck!
 

dwolfe

Member
Sounds like knowing your on-hand balances isn't important to your company.
Given that, if you Ship Confirm without updating inventory (Processing Option) you can later run Sales Cost Update (R42950) to update Costs and Prices followed by R42997 to Update Inventory, etc.
How you keep track of when your costs "settle" by Order must be complicated.

Good Luck!

Thanks Larry, Frosty, and Russell. We're doing the credit rebill dance right now and it's a bit hard on all involved. I was hoping there was some new magic function that the JDE folks had invented. It looks like we'll end up allocating inventory but hold off on ship confirm until the price settles then reprice, ship confirm, invoice, sales update as usual. We'll probably create a new status of "shipped awaiting settlement". Thanks for all your input.
 

RussellCodlin

Reputable Poster
If that is the case then it is probably worth looking at doing a modification to handle your specific business requirements. In theory you could sort of take the same approach that standard JDE has with procurement where there are differences between the receipted cost and the invoice cost. It wouldn't be the simplest thing to do when you take into account things like credit orders etc but it would be feasible. Everyone loves vanilla JDE but if the process is core to your business then battling against the software is not generally the best option.
 
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