Inventory re-evaluation after changing price in purchase order

Question

We are using perpetual inventory valuation with real time costing.
We created a purchase order and validated the shipment. Then we noticed the price in purchase order was wrong. Therefore, we edited the purchase order with correct prices. However, the issue is when we checked our inventory valuation, it is still based on the old price not the updated price. It seems that inventory valuation is done when the shipment is validated and if you later change the price of the purchase order, it won't a

Pasha Golshani · Answer

Hi Paresh,

Thank you very much for your help. I have done what you suggested in one other similar case and the inventory valuation got corrected. This time the issue is that a few hundred sale orders have been created based on that specific purchase order. Transfers of all those sale orders have also been validated. So I think at this stage we cant return the original shipment. What do you think?

Paresh Wagh · Answer

You can try processing a "return" of the original shipment and process a new receipt against the updated purchase order.
NOTE: Try this in a development/test instance to ensure you get the results you expect before doing it in production.

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