Introduction

It’s not uncommon to encounter price mismatches between vendor invoices and the prices listed on corresponding purchase orders (POs) or receipts. These discrepancies, often small on paper, can cause significant issues in accounting accuracy, cost reporting, and inventory valuation if not addressed correctly.

In Cetec ERP, you have practical options to identify the source of the discrepancy and correct it efficiently, depending on whether the PO or the vendor invoice contains the correct price.

Step 1: Determine Which Price Is Correct

Start by verifying which cost is accurate:

• If the PO or receipt price is correct: The discrepancy originates with the vendor’s invoice.
• If the vendor’s invoice is correct: The receipt in Cetec ERP will need to be adjusted to reflect the true received cost.

Step 2: If the PO/Receipt Price Is Correct

When your system price is right and the vendor’s invoice is incorrect, contact your vendor directly. You can either:

• Request a revised invoice with corrected prices, or
• Ask the vendor to issue a credit or write off the discrepancy.

This approach ensures your accounting remains consistent and prevents double adjustments that could distort your cost of goods sold (COGS).

Step 3: If the Receipt Price Is Incorrect

If you determine that your original PO or receipt entry was wrong, you’ll need to adjust it to match the actual price paid. There are two main methods for this:

Option 1: Cancel and Re-Process the Receipt

This method is straightforward. Cancel the incorrect receipt, then re-enter it at the correct price.

This method is best used when the received materials have not yet been used or shipped.

Option 2: Adjust Bin-Level (Receipt-Level) Cost in Inventory

If the items are still in stock but have already been received, you can make an inventory adjustment instead of canceling the receipt.

• Go to the Part Record in Cetec ERP.
• Find the Bin-Level (or receipt-level) cost for that inventory lot.
• Create an Inventory Adjustment using a clear reason code (for example, “Receipt Cost Correction”).

This adjustment automatically updates the part’s average cost, ensuring that all future cost rollups (BOMs, assemblies, etc.) reflect the corrected data.

Step 4: If the Goods Have Already Been Used or Shipped

If the materials in question have already been issued to a work order or shipped on a customer invoice, the correction must be made retroactively on that transaction.

• Go to the Sales History for the part.
• Locate the invoice containing the shipped goods.
• Edit that invoice to adjust the material cost.

This ensures accurate historical costing and preserves financial integrity for your closed work orders.

Final Thoughts

Cost discrepancies are an inevitable part of manufacturing and purchasing, but they don’t have to lead to confusion in your ERP system. Cetec ERP provides flexible, traceable methods to correct pricing mismatches at any stage (whether before, during, or after receipt) while maintaining accurate inventory valuation and financial reporting.