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Cost option 3, Vendor Determined

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Donna Simkovic
Posts: 25
11/18/2015 5:45 PM

    Can anyone give me a good description of what happenes when using Cost Option 3 (Vendor Determined) on an agreement item?

    We have a vendor who we buy surgical totes from.  The components and the cost of these totes change daily.  We have suggested using the Vendor Determined pricing but they want an explanation of how it will work.  I've looked everywhere and can't find a good description of the process.  Does it send any cost, at all?  Does our system accept any price they return? etc.

    Thank you in advance.

    JonA
    Veteran Member
    Posts: 1162
    Veteran Member
    11/18/2015 8:27 PM
      If the cost option flag is set to 3 and no cost is entered, when the line is received a buyer message for "No vendor unit cost" is created when someone attempts to release the receiver. The buyer has to enter a unit cost in PO52 and change then release the message. This will be the unit cost to match when the invoice is processed. The receiver can then be released. When the invoice is processed AP will have to enter the unit cost on the invoice in MA43 because there is no unit cost to pull from the PO line. If that unit cost is different from what the buyer entered in PO52 a cost message will be created, depending on your tolerance settings.
      Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health
      Donna Simkovic
      Posts: 25
      11/24/2015 7:17 PM
        Thank you. That sounds like much more work than what we're doing now with the incorrect unit costs. Back to the drawing board.
        Kat V
        Veteran Member
        Posts: 1020
        Veteran Member
        12/2/2015 12:58 PM
          You can change the cost at point of order - prior to receipt - on PO20. The item would create a PO with cost option 3. Buyer calls in order/gets PO Acknowledgement, changes price and cost option.
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