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 Sage 300
- Vendor Contract Costs hold the agreed base cost per unit of measure for each component plus volume discounts. They default onto orders, receipts, invoices, returns and credit or debit notes.
- A plant that values stock at standard cost can set Default Item Cost in P/O Options to Standard Cost. Order lines then show the standard cost unless a contract cost exists.
- The Unit Cost finder shows every vendor's contract cost for a component on Purchase Order Entry and Invoice Entry.
- Item costs update either during posting or during Day End Processing, depending on the Inventory Control option for when to cost inventory. Run Day End Processing before you compare component costs.
- Set up separate P/O account sets for items assembled in different areas or obtained from different suppliers. Each set has its own Payables Clearing account, so cost differences stay apart by group.
What Sage 300 does on its own
Vendor Contract Costs hold agreed prices per vendor and item. The contract cost then fills in as the default cost on purchase orders, receipts, invoices, returns and credit or debit notes. The guide describes no warning when an invoice cost differs.
- Only works for stocked items with a contract cost record.
A third-party add-on (Greytrix three-way PO matching) can add Warning, Tolerance or Error limits on cost.
What you need and the setup steps: Supplier price checks for Sage 300.
Example
Example Resin Supplies sends an invoice for 4,000 kg of polypropylene. The purchase order price is $2.10 a kg. The invoice charges $2.28 a kg.
| Line | Amount | What the check finds |
|---|---|---|
| Polypropylene, 4,000 kg at $2.28 | $9,120.00 | Order price was $2.10, so the line is $720 over |
| Fuel surcharge | $85.00 | Not on the order |
| Pallet fee | $40.00 | Not on the order |
The check flags the price rise of $0.18 a kg and both surcharges. Purchasing confirms the new rate or disputes it before the bill goes to approval.
Common mistakes
- Letting the purchase order price be edited to match the invoice, which erases the evidence of a price rise.
- Accepting surcharges because the amount is small, then finding they add up over a year.
Step-by-step guides for Sage 300
What Pulsify adds
Pulsify checks every line against the purchase order or a price list you upload for each vendor. Pulsify connects to Sage 300. We set up the connection for you. More about supplier price checks in Pulsify or Pulsify for manufacturers.
More help
- Supplier price checks in Sage X3 for manufacturers
- Supplier price checks in SAP B1 for manufacturers
- Supplier price checks in S/4HANA for manufacturers
- Invoice approvals in Sage 300 for manufacturers
- Multi-entity accounts payable in Sage 300 for manufacturers
- Duplicate invoice checks in Sage 300 for manufacturers
- PO matching in Sage 300 for manufacturers
- All Sage 300 how-to guides
Sources
Last checked 2026-10-19.
Common questions
Where do I see agreed component prices in Sage 300?
In Purchase Orders > P/O Setup > Vendor Contract Costs. They default onto orders, receipts, invoices, returns and credit or debit notes. The Unit Cost finder shows every vendor's cost for the item.
Are small surcharges worth checking?
Yes. A $40 pallet fee on 300 deliveries a year is $12,000. Check recurring surcharges against the supply agreement and ask for them to be fixed in writing.
Where do contract costs show up?
As the default cost on purchase orders, receipts, invoices, returns and credit or debit notes.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier price checks in Sage 300 for manufacturers.