How to Correct Item Pack Costs
Overview:
If you notice an Inventory Item's pack cost does not align with its pack size (and the pack size is correct), then it is usually because an incorrect pack cost was imported from a recent invoice. Optical Character Recognition ("OCR") technology, when applied to scanned invoices, is not perfectly accurate. In addition, some vendors do not isolate things like the pack cost, deposits, or tax amounts on their invoices.
One easy solution when you discover a Pack Cost is incorrect is to contact COGS-Well support at support@cogs-well.com. However, it is usually relatively easy to correct inventory pack cost errors if you know where to look to find the error and how to make the correction.
How to Audit Inventory Item Pack Cost Errors:
Invoice Image: The Pack Cost for an inventory item will reflect the most recent vendor invoice for that item. The only circumstance where a pack cost will not reflect the most recent invoice is if someone manually updated the pack cost via the Item Cost Update feature (discussed below), or if the item was most recently received via the transfer feature.
Please note that inventory Count Unit and Recipe Unit costs are both derived from that item's pack cost and the number of count or recipe units in a pack.
To audit a pack cost error, it makes sense to first look at the most recent invoice image for the item in question. To provide an example, let's say that you print out an inventory count worksheet and you notice the price for a "Hummin' Bird 50 Liter" keg is $201 and you know that price is too high.
Your first step for auditing the error should be to navigate to the inventory setup feature and select the Hummin' Bird keg inventory item to view the invoice image (an example is shown below):
In the above example, we have highlighted the button to show the last invoice image. The example below shows the full invoice image. What we see via this image is that the AP automation system, in this case it was from Plate IQ, exported the total Amount (including a $50 deposit) for the Hummin' Bird Keg to COGS-Well as the pack cost instead of the Unit Price of $151.00:
How to Fix Inventory Item Pack Cost Errors:
There are two options for fixing Pack Cost errors. The first way is to correct the invoice receiving record using the Enter Receiving feature. The second way is to use the Cost Update feature that is accessed via the Inventory Maintenance menu. Both methods are reviewed below:
Correct the Receiving Record:
The most accurate way to fix the pack cost for the Hummin' Bird keg example above is to update the invoice via the Receiving Entry feature. Receiving is where invoices can be viewed or edited in COGS-Well. If we navigate to Inventory>Entry>Receive we will land on a grid showing all invoices by received date. If we then search the grid by entering the invoice number at the top of the Doc Number column, we can quickly find the receiving record for this invoice. An example is shown below:
If we select to edit this invoice, the line item detail will display as shown in the example below. We can now see that the invoice amount to distribute at the bottom of $151.00 is correct, but Plate IQ created a line item for a deposit return and they used a pack cost of $201.00 rather than $151.00 for the Hummin' Bird keg:
The Pack Qty, Pack Cost, and/or Total Cost for a line item on an invoice can be changed (all in light blue). To correct this invoice, we will first delete the -1 pack quantity for the Deposit line item (we can't delete a line from an imported invoice so making the quantity blank eliminates a cost record being stored). We will then change the pack cost for the keg to $151.00. An example of the corrections is shown below. Please note that the invoice amount to distribute is still in balance at $151.00:
Tip: Use this Funnel Button when viewing an invoice to filter out all the line items on the invoice that a vendor delivers, but were not received on the invoice you are viewing. After you click on this funnel button, only items received will display which will make it much easier to find the items you want to view or modify.
Summary for Correcting the Receiving Record: Correcting the Receiving record for an invoice not only updates the pack cost but if you are tracking inventory usage, the usage cost and quantity will be corrected as well. Please note that the above examples represent fairly straightforward examples of correcting an invoice. However, corrections can be more complicated than the above examples (particularly if the invoice automation system adjusts the quantity received for an item when the wrong pack price is imported to make the invoice balance). If you run into a situation of this nature and would like help correcting it, then please contact support at support@cogs-well.com.
Correct Pack Cost Using the Cost Update Feature:
If you don't need or care about making the invoice receiving record correctly, and your priority is to correct the pack cost quickly, then the Cost Update feature is a fast and easy alternative way to update the pack cost for an item. This feature is accessed by navigating to Inventory>Maintenance>Cost Update. An example of the criteria display is below:
Site: If you operate multiple Sites then you will be required to use the drop-down and select a Site. By looking at the invoice image, we know the Site name for his invoice (Chow).
Effective Date: Select today's date if you want the cost to be correct from today forward (until the next invoice when this item is received again). If you are trying to update a pack cost that is being used for an inventory count or extension, then select the date the count was (or will be) taken.
Vendor: In the above example, we know the vendor is Red Oak Brewery.
Staying with the above Hummin' Bird keg example, If we click the Next button or Entry tab after our criteria are entered, we will see a display like the one below. In the example below we are changing the Previous Pack Cost of $201.00 to a New Pack Cost of $151.00 for the Hummin' Bird keg inventory item. Click the Save button to complete the update:
