In NetSuite, the Last Purchase Price and Purchase Price fields on item records serve distinct purposes, yet they often intersect in purchasing processes. Understanding these differences is crucial for effective procurement and inventory management. Here’s a breakdown of these fields and their functionality.
Last Purchase Price
The Last Purchase Price reflects the most recent price paid for an item when inventory is increased. This field is updated automatically based on transactions such as item receipts or vendor bills.
- Automatic Updates: It captures the cost from the latest transaction that adds inventory.
- Fallback for Purchase Orders: If no Purchase Price is specified, purchase orders use the Last Purchase Price as the default rate.
- Non-Editable: Users cannot manually change this field, as it is system-driven.
This field is ideal for tracking real-time cost trends and analyzing purchasing patterns.
Purchase Price
The Purchase Price is a user-defined field that represents the intended or negotiated cost of an item.
- Manual Input: It requires manual updates by users in the item record.
- Editable: Users can freely adjust this field to reflect vendor pricing or internal strategies.
When creating a purchase order, NetSuite determines the rate based on the following logic:
- Purchase Price: If specified, this value takes precedence.
- Last Purchase Price: If the Purchase Price field is blank, the system defaults to the Last Purchase Price.
The Last Purchase Price and Purchase Price fields are complementary tools in NetSuite. The Last Purchase Price dynamically tracks recent costs, while the Purchase Price provides a consistent rate for purchasing decisions. By leveraging both fields effectively, businesses can maintain accurate cost tracking and optimize procurement workflows.