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Purchase Cost Best Practice

gina13tiger

Active Member
Hello.

I was looking for some user inputs. Because of the native E1 functionality that over-writes the 08 cost in the F4105 due to various activities such as voucher matching, my business users are exploring the option of creating a new cost method with a fixed cost (say cost method 12). We have mentioned the E1 functionality for the supplier catalog, which would trump the 08 cost for PO pricing; however, the response from our business users is that Purchasing does not want to be responsible for making changes in the Supplier Catalog and want Finance to continue to be the users making the updates but within the F4105. We have several divisions within our ERP system, and this change would only be respective to one branch plant as everyone else is using either the 08 cost or supplier catalog or a combination of the two.

Has anyone had any experience with this situation? Are there any potential impacts outside of PO pricing that would occur as a result of not using the 08 cost or areas we need to be aware of or concerned about if this is the path of customization that this division desires?

Thank you in advance for your insight.
 

DSauve

Legendary Poster
We use 03 for our purchased cost in one of our branch/plants. The cost rollup takes that 03 cost plus our material burden adder (XB) and puts that into 07.
 

gina13tiger

Active Member
What was the business reason for using the 03 cost vs the 08 or supplier catalog? Were there any configuration nuances with not using the 08 cost that may not be as obvious to be aware of?

Thank you for the reply!
 

DSauve

Legendary Poster
The 03 (Memo) cost doesn't get updated when we do a PO Receipt, but the 08 cost gets updated with the last PO Receipt cost. We picked the 03 cost so that when our Purchasing group set this value, it would be unchanged by a PO Receipt.
Incidentally, we also use supplier catalogs for a few items with quantity breaks defined.
 

gina13tiger

Active Member
Thanks Don. Were there any setup/configuration items in particular to be aware of that you encountered in making this change? We know there is the change in the purchasing flag in the 4105 table, but I have not been able to find much in searching as far as other inter-relationships that may not be as intuitive to pay attention to when implementing this change.
 

DSauve

Legendary Poster
For full disclosure, we set this up initially over 16 years ago, but I'll try to answer as best I can.

In Branch/Plant Constants (P41001), you set up a Purchasing cost type. We have this set to 03.
For Cost Rollup (R30812) in the version you run, there are processing options under the "Processing" tab to indicate the cost type for Purchased Items and Outside Operations (if you use those). We have these set to 03.
Then, as you mentioned, there is the purchasing flag in the F4105 table.

As always, I highly recommend testing this in DV first. Good luck!
 

gina13tiger

Active Member
We would absolutely be testing this in a lower environment for sure. Thank you for this information and your input!
 
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