For the Item Pricing Hierarchy, see Item Cost Hierarchy

Vendor Price Levels (Highest Priority)

1. Open Accounts Payable, Main menu, Vendor Maintenance.
2. Select or enter a vendor.
3. Click More to access the drop-down menu.
4. Select Items to open Vendor Receipt History.
5. Click Pricing to access Vendor Price Level Maintenance.
6. Click the Vendor Price List (flashlight icon) to open the Vendor Price List.
7. Search for price level settings for the vendor that apply to a specific Product Line or Item Code.
8. Review, edit, or delete entries as needed, including Quantity Breaks.

If Vendor Price Levels Aren’t Used

Standard and Average Cost Items

• Standard Valuation:
  • Use Standard Cost from Inventory master file.
  • If zero, use Last Cost.
  • If zero, use Warehouse Average Cost.
  • If zero, use Item Average Cost.
• Average Valuation:
  • Use Warehouse Average Cost.
  • If zero, use Item Average Cost.
  • If zero, use Last Cost.
  • If zero, use Standard Cost.
• LIFO/FIFO/Lot/Serial Cost Items
  • Use Vendor Last Cost.
  • If the cost is zero or no vendor assigned, use Item Last Cost.
  • If zero, follow the hierarchy for the valuation method.

Auto Generate Orders Selection

1. When selecting Update Unit Cost With:
   • Standard Default or Last Unit Cost: Primary vendor’s last cost
   • Standard Unit Cost: Item’s standard cost
   • Average Unit Cost: Item’s average cost
2. If any cost is zero, follow a hierarchy based on the valuation method:
   • Standard Valuation: Standard → Last → Warehouse Avg → Item Avg
   • Average Valuation: Warehouse Avg → Item Avg → Last → Standard
   • FIFO/LIFO/Lot/Serial: Vendor Last → Item Last → Standard → Warehouse Avg → Item Avg

More information

• Sales Order Module: The system calculates cost during the Sales Journal update. If the standard cost is zero, the hierarchy applies.
• Inventory Module: Hierarchy determines cost in Inventory Transaction Entry.
• Inventory Requirements Planning: The system uses Vendor price level if none. Primary vendor’s last cost → item’s last cost → standard cost.