The Last Purchase Price field displays the most recent purchase price of the item.
This price is determined by the most recent transaction for the item that added positive inventory, such as a purchase receipt, inventory transfer, or inventory adjustment. (This does not include item returns or assembly unbuilds.)
If two transactions are entered on the same day, the one entered later takes precedence and is used to calculate the last purchase price.
If the account is NetSuite OneWorld and the subsidiaries have different base currencies, the Last Purchase Price available in the Purchasing tab, will show amounts using the Parent Subsidiary’s base currency. This is the current design of the system.
On the other hand, since Locations are subsidiary-specific, the Last Purchase Price available on the Location subtab, will be reflected using the base currency of the subsidiary which the location belongs to.
When you use the Multiple-Location Inventory feature, the following is true:
- The last purchase price reflects the most recent transaction at any location.
- The Inventory subtab of inventory item records includes a link to the last positive-inventory transaction per location.
- If multiple purchases are made on the same day with different prices and locations, then the highest price paid on that day becomes the last purchase price.
If you use Multiple Units of Measure, the last purchase price is calculated using purchase units.
On assessing various scenarios in the sandbox account, it was found that:
- The Last purchase price field is updated when the item is received. In other words, even if a purchase order is created, it is only when the item is received that the last purchase price if updated.
- If a single purchase order consists of the same item in multiple lines, the rate of the latest line is considered for the last purchase price.
- If a purchase order is placed with rate as 0, then the last purchase price would display 0.
- The last purchase price displays value with 2 decimal points.
- Only transactions having a positive impact on inventory such as purchase orders are considered for last purchase price computation. Therefore, transactions such as vendor returns are ignored.
In Accounting preference, under the Items/Transactions subtab, there is a feature to ‘INCLUDE LANDED COST IN LAST PURCHASE PRICE’. On enabling the same, the Last purchase price would include the landed cost factor too. On receipt of the item, the purchase price is immediately updated with the landed cost factor.
NOTE: When an item does not contain a Purchase Price or a Preferred Vendor with Pricing details, the Last Purchase Price of the said Item will be used by NetSuite when a new Purchase Order is created (The last purchase price will default as the PO rate). So this PO rate will include the landed cost amount too. Hence considerations must be made so that the landed cost calculations are not duplicated.