3301376 - List of Transactions by Which the Last Purchase Price Is Updated

When is the price list of the Last Purchase Price (LPP) updated?

Environment

SAP Business One

Resolution

The prices in the Last Purchase Price price list are automatically updated by the application when the following transactions are performed:

1. When you enter an incoming invoice, A/P invoice, or A/P reserve invoice (Purchasing - A/P).
2. When you enter a goods receipt (Inventory Module).
3. When you enter a positive inventory opening balance/quantity for an item (Inventory Transactions).
4. When you counted and enter a positive inventory result that triggers a goods receipt (Inventory Posting document).
5. Parents in Production Bill of Materials (BOM).
   • On perpetual inventory systems:
     • When completing standard or special production orders and receiving the product/BOM to warehouse (WH), the BOM's last purchase price is updated with the BOM cost in the related inventory posting.
     • If the BOM is managed by the FIFO/MAP valuation method, the last purchase price is updated with the total sum of the components' cost.
     • If the BOM is a standard item, the Last Purchase Price is updated with the BOM standard price.
   • On non-perpetual inventory systems:
     • When completing a production order and receiving the BOM to WH, the Last Purchase Price of BOM is updated with the BOM price in the BOM definition or as defined in the receipt from production.
   • Disassembly production BOM:
     • In both perpetual and non-perpetual inventory system, the Last Purchase Price of components are not updated when receiving the components to stock.
6. When landed costs are recorded.
   • If a landed costs document is recorded for a GRPO the Last Purchase Price will be updated and both the GRPO and the landed costs will be considered in the calculation.
   • When adding an A/P invoice after creating a landed costs document, the Last Purchase Price of the item included in both documents remains unchanged.
   • When adding landed costs after creating an A/P invoice, and the posting date of the landed costs is earlier than the posting date of the A/P Invoice, the Last Purchase Price is not updated. The Last Purchase Price cannot be overwritten by a price from a document with an earlier posting date.

If none of these transactions have been performed in the system for an item, the Last Purchase Price price list will not contain the item. Only the list of the transactions mentioned above changes the price of an item in the Last Purchase Price price list.

Note: 

• The Last Purchase Price will never be overwritten by zero price. This rule is valid for all documents which update LPP, including correction and reversal documents. When the item price is zero, there should be no update of LPP irrespective of whether there are any freight charges. When you post one of the documents mentioned above using a date prior to the last update date of a certain item, the item's Last Purchase Price is not updated. Even if a business receives free samples, their zero price should not affect the LPP which is used for setting sale prices/gross profit calculation/and so on. You can refer other price lists to the Last Purchase Price price list with a defined factor. You cannot, however, change the prices in the Last Purchase Price price list manually.
• The currency you choose in the specific document will be the currency to show in the Last Purchase Price List. So if you need/want a specific currency to be the one in the Last Purchase Price List please choose the currency appropriately before posting the document as the prices in the Last Purchase Price List cannot be changed/updated manually.
  Examples:

• • AP invoice posted with currency USD (US Dollar), the Last Purchase Price is updated in USD.
  • You get an invoice for the transport costs in CAD (Canadian Dollar), you post the Landed Costs document in CAD, the Last Purchase Price gets updated in CAD.

• The Last Purchase Price is stored on a per UoM (Unit of Measure) code basis. The Last Purchase Price is not converted and updated for other UoM codes.

  When the Last Purchase Price has a price for a non-base UoM and Last Purchase Price is the base price list for another price list, the target price list won’t display the non-base UoM price according to the Last Purchase Price.

  Prices defined for non-pricing UoM are not automatically copied from the source price list into the target price list based on the Base Price List and Factor definition in the target price list.