Planned

Retrospective Purchase Price changes - Purchase Price system is flawed.

Dear all, 


I know many of us purchase items from Asia with delivery through DHL express, Fedex etc. I have a real issue with the inevitable time delay between receiving items and receiving the VAT, duty fees invoice from the courier.


As Linnworks won't allow me to go back and change the purchase price on an invoice once it has been booked in, this means that we can't actually book anything into Linnworks until this second invoice arrives (often weeks after delivery). This is because as there is no way of knowing the true full purchase costs for landing the item in the UK until that point. 


What would be really helpful would be if you could go back and retrospectively change the purchase price on the purchase order to the correct value when you know what it is. This would allow you to book in items when they arrive so your stock values are correct and you can then go back and change the purchase prices to the correct value when you have all the VAT and duty figures. This would also allow you to do it all in your native currency as well. This then would need to update the system with that purchase price from the date of booking in, thus providing correct financial data. 


At the moment there is no way of doing this unless you don't book items in until you have the second duty and VAT invoices  and sell the stock anyway which provide completely false financial information on the margins of your sales between the point of arrival in your stock room and the point of the duty and VAT invoice being raised. As this take several weeks this potentially provides enormous inaccuracies in your financial information which is both unhelpful and if you report profits from figures on Linnworks illegal. 


Please could someone look adding this feature request as I know I cannot be the only business who imports form outside of the EU and has this problem.As I say this essentially makes the entire purchase price system flawed for anyone who imports (ie: most businesses). 


Many thanks for taking the time to consider this. 


Mickey 


2 people like this idea

Hi Micky,

I have discussed this with our core system architect who is currently putting together a specification for further improvements to Purchase Orders and Supply Chain management.


When the PO is booked in the Linnworks Stock Value is adjusted by the value on the of the item on the PO, this we can not change as there is clearly a risk the stock could have been shipped by the time you know the true purchase price.


Part of the changes that we will be implementing at a PO level will be to support the following 

  • It will be possible to add additional payment, but not actually change the initial purchase price AFTER it has been delivered. Hence the stock value will not be affected
  • It will be possible to log a credit note for the PO payment statement

hope this helps 
Mark Aldous
Head of Implementation
Linn Systems Ltd

Hi Mark, 


thanks for taking the time to read this. However I am little confused as this won't solve the problem (unless I have misunderstood you)


What you are saying is that there will be a way to add additional costs to a PO after delivery, that is certainly a good thing however it very limited. The fact you can't update the stock values makes this functionality only useful for exporting PO information and doesn't solve the flaw in the stock value system ; The reason being that the stock values for imported goods are always going to be incorrect between the point of the product landing in your stock room and you having the true importation costs to hand weeks later (ie nothing that is imported can utilise linnworks for sound financial information which surely is an enormous flaw in the whole software?).


There must be a solution to this because at the moment the functionality of PO and stock values is redundant for anything except goods purchased domestically.


I really think something needs to be done. Is there any other way of solving this?


Mickey 




Hi Mark, 


thanks for taking the time to read this. However I am little confused as this won't solve the problem (unless I have misunderstood you)


What you are saying is that there will be a way to add additional costs to a PO after delivery, that is certainly a good thing however it very limited. The fact you can't update the stock values makes this functionality only useful for exporting PO information and doesn't solve the flaw in the stock value system ; The reason being that the stock values for imported goods are always going to be incorrect between the point of the product landing in your stock room and you having the true importation costs to hand weeks later (ie nothing that is imported can utilise linnworks for sound financial information which surely is an enormous flaw in the whole software?).


There must be a solution to this because at the moment the functionality of PO and stock values is redundant for anything except goods purchased domestically.


I really think something needs to be done. Is there any other way of solving this?


Mickey 





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