# Supplier price checks in Kinetic for manufacturers

Kinetic covers part of supplier price checks on its own. Raw material prices move with metal, resin and energy markets, so the purchase order price is often out of date when the invoice lands.

## Why it matters for manufacturers

- A cost per unit that is wrong by a few cents changes margin on every product that uses the material.
- Surcharges for steel, fuel and currency are added late and may not be in the supplier agreement.

## For manufacturers in Kinetic

- Enter the bill at the supplier's price and let the purchase price variance post, rather than reopening the PO.
- A company configuration setting can allow a receipt price update without backing out the receipt. It may not update the PO.
- Changing a PO price after receipt means unreceiving, reopening the line and receiving again.

## Rules that matter for manufacturers in Kinetic

- Kinetic has no standard price tolerance. If you want a stop, ask a developer for a BPM rule on the invoice line.
- The GRNI clearing tolerance in Company Configuration is about receipts not yet invoiced. It does not check price.
- A fuel or metal surcharge not on the order should be disputed before approval, because the variance account hides it.

## What Kinetic does on its own

Kinetic has no standard price tolerance on invoices. Enter the invoice at the supplier price and the difference posts as a purchase price variance. The GRNI clearing tolerance in Company Configuration is about not invoiced receipts, not price. Some sites build a BPM rule that stops a line over a set percentage of the PO line.

On an invoice with a different value from the receipt, Epicor can revalue the FIFO layer with an ADJ-PUR transaction and expense the rest.

What you need and the setup steps: https://www.pulsify.tech/supplier-price-checks-for-epicor-kinetic/

## Example

Example Plastics Granules supplies 6,000 kg of nylon on a purchase order at $3.40 a kg. The plant receives it in full. The invoice charges $3.55 a kg.

- Receipt picked in Get Not Invoiced Receipts, 6,000 kg at $3.40: $20,400.00 (The order price)
- Invoice keyed at the supplier price, 6,000 kg at $3.55: $21,300.00 (The $900 difference posts as a purchase price variance)
- Variance review with Edit List in AP Invoice Entry: $900.00 (Buyer confirms the new price or disputes it)

The bill is paid at the supplier price only after the buyer agrees. The PO is not reopened. Changing it after receipt would mean unreceiving, reopening and approving again.

## Common mistakes

- Watching the variance account only at year end.
- Reading the GRNI clearing tolerance as a price check.
- Changing the PO price to clear the variance, which erases the evidence of a rise.

## Step-by-step guides for Kinetic

- How to check AP invoice lines against agreed supplier prices in Kinetic: https://www.pulsify.tech/how-to/check-bills-against-agreed-supplier-prices-in-epicor-kinetic/

## What Pulsify adds

Pulsify checks every line against the purchase order or a price list you upload for each supplier. Pulsify connects to Kinetic. We set up the connection for you. More: https://www.pulsify.tech/po-matching/

## Common questions

### How do Kinetic manufacturers handle a material price change on a bill?

Many post the difference as purchase price variance. A Company Configuration setting can allow a receipt price update without backing out the receipt. Kinetic has no standard price tolerance. Changing the PO itself after receipt means unreceiving first.

### How do manufacturers handle material price rises?

Compare invoice price to the purchase order price on every line. If the supplier agreed a rise, update the standard cost and the price list. If not, dispute the invoice before approval.

### Where do price differences go?

To a purchase price variance account.

## Sources

- https://www.epiusers.help/t/49067
- https://www.epiusers.help/t/116142
- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices

Source: https://www.pulsify.tech/supplier-price-checks-in-epicor-kinetic-for-manufacturers/ (last checked 2026-10-19)