Stock Processing and Pricing

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The Receive Stock option enables you to update inventories at your warehouse locations, including quantity and price information. This section covers some of the concepts tied to this option.

Menu Path:  Warehouse Inventory > Entry & Processing > Warehouse Inventory > Warehouse Administration > click Receive Stock

Comparing Warehouse Inventory with Purchasing

Following are some of the similarities and differences between Warehouse Inventory and Purchasing in terms of receiving stock:

How Warehouse Inventory's Profile Affects Stock Processing

Two fields in the Warehouse Inventory Profile determine how your organization can process incoming stock:

• Receive In Warehouse if PO Has Stock Number
  If the field is selected, then users cannot use the Received Ordered materials option in Purchasing when a line item in a purchase order is associated with a stock number. Users will only be able to receive the goods in the Receive Stock page.

• Require Valid PO When Receiving Inventory
  If the field is selected, then users must enter a valid purchase order number from the Purchasing System when using the Warehouse Administration page's Receive Stock option.

Updating Warehouse Unit Costs

Changing the warehouse unit cost for a received item depends on two factors:

• Whether the received item originated with or without a purchase order.

• The setting of the Auto Recalc Price field in the item's Stock Number record.

Following are explanations of how to set new costs for received stock items.

Important
When receiving stock for a purchase order, you can use the Order/Issue Factor field to calculate the Receive Stock page's Warehouse Units Recvd and Warehouse Unit Cost fields. However, the effect on the Price field in the Inventory Catalog is still dependent on the item's Auto Recalc Price field in the Stock Number table. If this field is not selected for certain items, you can update their prices manually, using the New Price item on the Receive Stock page's Action Bar.

With a Purchase Order

The purchase order cost defaults to the Receive Stock page's Purchase Unit Price field, which in turn defaults to the Warehouse Unit Cost field. You can change the purchase order cost, but you cannot access the Warehouse Unit Cost field.

The methods for changing the warehouse cost and their effects depend on the Stock Number record's Auto Recalc Price field:

• If Auto Recalc Price is selected, enter the new cost in the Purchase Unit Price field. This cost defaults to the Warehouse Unit Cost field and also updates the Last Cost field in the item's Stock Number record.
  The Last Cost field provides the warehouse unit cost for the stock item the next time you receive stock, if a purchase order is not referenced. The unit cost changes each time the received cost is changed, as long as the item received - either with or without a purchase order - has its Auto Recalc Price field selected. This allows the system to update the Inventory Catalog's Average Cost and Price fields. The amount in the Price field only applies to warehouse item requests.

• If Auto Recalc Price is not selected, changing the price of a received item in the Receive Stock page changes the Last Cost field in the item's Stock Number record. This changes the default warehouse unit price for the stock item the next time the item is received without a purchase order.
  However, in this case, the system cannot update the catalog record's Price field. If you want the new unit cost reflected in the Inventory Catalog, you must use the New Price item on the Receive Stock page's Action Bar to change the price. For information on this item, refer to the Updating Prices section below.

One other consideration with purchase orders is the possibility that a stock item's unit of measurement is tracked differently in Purchasing than in Warehouse Inventory. In this case, you will need to adjust your entry of the warehouse units received relative to purchase order units received:

1. Enter the purchase order units received using the unit of measurement for tracking the item in Purchasing.

2. Enter the appropriate number of units in the Warehouse Units Recvd field relative to the quantity you entered in the Purchase Units Recvd field.

The system will then calculate the new warehouse unit cost using the following formula:

Purchase Unit Price x (Purchase Units Recvd ÷ Warehouse Units Recvd) = Warehouse Unit Cost

Without a Purchase Order

For received items that do not reference a purchase order, you can change the price in the Warehouse Unit Cost field, but be sure to take into account the setting of the Auto Recalc Price field in the item's Stock Number record.

• If Auto Recalc Price is selected, the unit cost defaults from the Last Cost field in the item's record in the Stock Number table. If you change the Warehouse Unit Cost field, the new price defaults to the Last Cost field. The system then recalculates the Average Cost and Price fields in the Inventory Catalog.

• If Auto Recalc Price is not selected, the Unit Cost defaults from the item's Last Cost field, but changing the Warehouse Unit Cost does not update either the Stock Number record or the Inventory Catalog's Average Cost and Price fields. To update these fields, you can use the New Price item on the Receive Stock page's Action Bar. For information, refer to the next section.

Updating Prices

When you access the Receive Stock page's Stock Data section to record the receipt of new stock, the New Price item displays on the page's Action Bar. Clicking this item displays the New Price page, where you can manually change the price of a stock item. Note, however, that the page only displays if the stock item's Auto Recalc Price field in the Stock Number table is not selected. 

The New Price page displays two fields:

To change the item's price, enter the new unit cost in the New Price field, and then click OK to return to the Receive Stock page. The new unit price will display in the New Price field. Enter this price in the Warehouse Unit Cost field to update the Last Cost field of the Stock Number record.

For the procedure on using the New Price page, refer to the Procedures section in the Receive Stock Page.

Note
If you enter a new value in the New Price page but not in the Receive Stock page's Warehouse Unit Cost field, the new price updates the Inventory Catalog but not the price in the Stock Number record's Last Cost field.