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Contract Purchase Agreement Pricing Update in Advance Pricing and how to update the item cost used in standard cost rollup

Profile Image for Michelle H. Michelle H.

 We are using Advance Pricing module in Purchasing (r12) to manage products by a purchasing category code that receive price increases/decreases .

There are many items to one Purchasing category code and a price change occurred. The new price was updated in the Price List for that purchasing category code and when a PO is created for a specific item it is priced correctly.

Now we need to update each raw material item's cost for that Operating Unit and Inventory org in the Manufacturing thread (this rolls up to the standard cost for the manufactured item). Is there a way to update the raw material item cost based on our purchasing category code? How can this be done short of pulling a report and updating each items' costs?

This is not updating a roll up of standard cost of the finish good but a change to a finished good's component within the rolled up standard cost.

Replies to this Topic

Profile Image for inayat mohd inayat mohd

you mean to say standard cost of FG is not picking the RM standard cost?

Profile Image for Ioan Hirsch Ioan Hirsch

If I understand correctly , Advanced Pricing module is used in order to provide sophisticated rule-based customised pricing to both Purchasing and Sales activities ( goods or services ) . 

The cost rollup functionality uses the inventory item COST ( standard , average ... ) for the product rollup . 

So there is no use of the price list defined in Advanced Pricing in the cost rollup .

If you use standard costing , you'll need to update the standard costs using the Update Standard Costs concurrent program , if you're on average cost , the costs are getting updated automatically when recieving goods in inventory ( good old funcionality ) .

You may always define and maintain an additional cost type ( let's say APST ) based on whatever logic you choose ( and maintain it via some customised process, real time or batch ) and use it for cost rollup for information and decision making purposes .

If happy with the APST rollup costs , you may update the standard costs from APST  ( Copy Standard Costs functionality ) .

Edited Sun, Jan 22, 2012 12:31 PM

Profile Image for david wright david wright

Hi Michelle,

If you are wanting to update the standard costs for the items, apart from manually updating each items cost elements eg (APST from above) you could download the costs, open the results in excel and make the changes to the costs.

You would then use the more4apps item cost wizard or build a custom program to upload the new costs into the item cost details interface.

Regards,

David

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