Handling cost difference in PO and actual Payment

Hello all,
I need some suggestions/ideas on how to solve my problem as mentioned below. If there are not any actual solutions, it is open for discussion as well. Please express your views.

Having working with and exploring this amazing platform ERPNext over the past few months, I have encountered amazing features and some deficits as well. It could be possible that these deficits are just my in-experience. Nevertheless, here’s my situation:

Let’s say I need to purchase 1000 kg of some item ABC from a vendor XYZ Vendors Pvt. Ltd. Now, I understand an ideal transaction would start with RFQ sent to vendor, vendor sends quotation, we create PO, vendor creates SO, sends goods and delivery note. Then we create PR and then PI and then finally we pay after we receive Sales Invoice/Payment Request.

But, practically we don’t follow these long process everyday, especially for repeated order with same vendor. We call to ask for current rates, create PO and send it to vendor and ask for delivery.
Lets say I am about to purchase 1000 kg of item ABC @ Rs. 100 / kg.
Sometimes, the rates quoted by vendor changes during delivery. This might happen because the cost of goods has increased at the source of supply chain → XYZ vendors Pvt. Ltd. pays more and thus charges me more. Lets say the new rate now is Rs. 105/kg.
Please keep in mind this increase in cost is not because of increase in transportation cost. It is increase in cost of item.
When I try to create PI, the system gives error, something like “rates in PO and PI must be same”.

Since we have already created PO, what is the recommended solution to address this problem besides cancelling the previous PO and editing rate.

https://docs.erpnext.com/docs/v13/user/manual/en/buying/buying-settings

Maybe the “Maintain same rate throughout the Purchase cycle” needs to be unchecked in your case.

Thanks

You can go on the PO and click on the Update Item Button. From here you can update the Qty or Rate for the particular Item.

PO-Update-Rates