Outsource PO Unable to Capture the Cost


Sometimes Outsource POs doesn’t pick the cost up automatically even though it has been mentioned in the pricing section, is there a reason why this is happening?.
See the attached image below for example.

Hey @vaibhav, let us look in to this for you. We’ll update you as soon as we can.

@vaibhav So It looks like the reason that part isn’t pulling cost data from the previous POs is that, as the system is set up currently, outsource POs don’t count towards the last buy cost, because they typically aren’t received in the way the non-outsource POs are.

There is a change coming to this, should be in the next Cetec version release some time this summer, that will include outsource POs in the pricing engine data, and that should correct this problem for you.

Glad to hear that change is coming soon however, I’d just like to know that if “outsource POs don’t count towards the last buy cost” then what exactly derives the pricing? They are not even picking up the pricing which is mentioned in pricing section of part itself.

Tough to know for sure then.
We used a copy of your data as it exists right now, and when we added that part to an outsource PO it had the cost:

Can you tell us step-by step how you created the order and went about adding the part for the outsource PO? Perhaps there’s some variable in your process that is causing it to not pull in the cost the same way? Otherwise, all we can do is ask that if you see this happen again, let us know and give us a chance to review prior to making any other changes, and we can try to figure out what’s causing the problem.

Actually, looking at it a bit more, I think the reason it pulled the pricing data now, and not before, is that there was an open outsource po that was generating the pricing data, but once that outsource po is closed the cost goes back to 0

So this goes back to what I said before about outsource POs not getting rolled in to the priocing engine (after they’re closed).

In order to avoid this, what you can do is edit the part record and set a “Last Resort Cost” that will be applied if no other pricing data is present. Since it looks like historically the cost for this has been the same, you should be able to set that to that value.

The issue is even if pricing is perfectly mentioned in the “Pricing” section under a part, Outsource PO doesn’t pull that price all the time [note that it pull the pricing sometimes, no idea why]. We don’t want it to pull pricing from “Last Buy Cost” as our pricing/cost varies as per the quantity of parts. So, I’d like to see Outsource PO pulling the pricing from the “Pricing” section every time.

Steps we use to create Outsource PO:
(a) Open particular line item against which Outsource PO needs to be created
(b) Click 'Outsource PO"
(c) Enter vendor name
(d) Enter part number, Qty [This is the time it should pull information from the pricing section]
(e) Click “Create Outsource PO”

It took some back and forth with our engineering team to figure out the problem here, but we did.

You are correct, the pricing engine should use cost breaks from the pricing tab. The problem in this situation is that your cost break is vendor specific. So, the combination of events that you’re experiencing is as follows:

  • You had a part that is only ever purchased on outsource pos, that did not have an open PO at that time
    • because there were no open POs, the pricing engine did not see the cost history from the outsource POs
  • The cost break you set for this part was specific to one vendor, meaning the pricing engine will only use that cost if the PO has that vendor set
    • Just as a note here, the break you set has both from and to qty set to 50, meaning it would only get used if qty is exactly 50. Typically this would be set as a range lik 0-50=cost1, 51-100=cost2, etc.
  • You go to create an outsource PO for that part from the workorder
    • The problem is here, on the Outsource PO screen the part doesn’t see the vendor, so your vendor specific break doesn’t get added.

So, as I said before, we have a change coming that will improve the way outsource POs get included in the pricing engine. In the meantime, you have two options:

  1. Set a last resort cost by editing the part, and this will ensure that cost gets set when no other pricing data can be found/used
  2. create a cost break for this part that isn’t specific to one vendor. This will make it so that the outsource PO screen can see that break when adding that part to an outsource PO

Okay, then I’d just wait for the upcoming fix, hopefully it will solve this problem.