# PO calculated price incorrect for package purchase

Hi,

I’m new to ERP Next. So far, it’s looking like a workable solution for me in most cases. However, one thing has me hung up. I have many items that are purchased in packages, e.g. screws, bolts, nuts, etc. I track these in inventory with a UOM of “EA” for each (i.e. individually). I buy, as mentioned, in packages, with a UOM of “PK”.

Within each item, I set up multiple UOMs, “EA” and “PK”. The conversion rate for “PK” is however many are in a package. For example, a package of washers that has 100. The package price is \$10, and I set this up in a price list for the item. I set the default purchase UOM to be “PK”.

When I go to create a PO, I expect that ordering 1 will set the line item price to be \$10. But it sets it to be \$1000. It’s multiplying the price by the conversion ratio.

If I set the price to be the price/100, then everything would work out correctly. But the purchase price is the pack price! I don’t want to have to enter in a modified price!

I’m coming from another ERP where this worked smoothly. I’m hopeful that I’m just missing something. Thanks in advance.

Dear Ryan,

The price list rate in ERPNext is for the Default UOM of any item.

So you should enter the price of Each ‘EA’ in the Standard purchase price list which in this case will be ‘0.1’. After this you’ll get the correct value in the PO for ‘PK’ UOM.

Alternatively, without creating the entry in the purchase price list, you can directly make one PO for one Packet by manually mentioning the 10\$ rate. The system will automatically enter the rate of 0.1\$ for each item in the standard buying list.

Hope this helps.

Thank you for your response. However, doing things as you mention in your first method poses problems. For example, a pack of 25 that is \$12.99. The individual price is \$0.5196. If I enter that in for the individual item price, it rounds that to \$0.52. Then, the pack price is incorrect.

Doing it the second way means that I always have to enter in the price (granted, I will always have to verify that the price hasn’t changed when entering a line on the PO).

It seems that since a default purchase UOM is entered for an item, that the price listed in the standard price list should be whatever the default purchase UOM is for that item.

One other thing while on the topic of costs. Does ERP Next have any way to deal with cost variances - standard vs. actual costs?

Thanks again,

Ryan

Okay, looks like option 1 will work. I had to do the following:

Set System Setting > Float Precision to 5
Set Customize Form> Item Price> Rate to Float

I verified that in the PO it multiplies the unit price by the package quantity to get the pack price. While this does work, it means that when I enter the “item” price, I have to do a manual calculation from the pack price before entering the item price. It still strongly seems like if you’re indicating in the item details that the default UOM for purchasing is a particular UOM, that this is how the price should be entered in the price list rather than defaulting to the default UOM.

BUT … I couldn’t have my cake and eat it too anyways. I would still have to calculate the unit price to enter it in the valuation rate field.

One thing that would be cool though is if you could enter an equation into the field like in a spreadsheet and it would do the calculation for you. For example, in the item price field, I could enter, “=12.99/25” and upon losing focus, it would perform the calculation for you.

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