How iFlows alerts you about purchase price increases

In the business environment, rigorous control of purchase costs is a fundamental pillar of profitability. Price fluctuations from suppliers, whether resulting from market conditions or invoicing errors, can erode commercial margins if not identified and managed proactively.

The iFlows platform integrates an automatic validation mechanism that serves as a strategic financial control tool.

Mechanism of Operation

The functionality is designed to act as an intelligent filter at the cost entry point of the company.

1. Reference Point: The iFlows system uses the last recorded purchase cost for each product as a reference value. This value is automatically updated with each validated reception, ensuring an always relevant comparison base.
2. Alert Trigger: When saving an intake document (NIR - Nota de Intrare si Receptie/Reception and Inspection Note) on which a product is listed, the platform automatically compares the value in the Document Unit Price field with the reference value (last purchase cost). If the new price is higher than the previous one, the system interrupts the saving process and displays a dialog window.
3. Detailed Alert Analysis: The window displays a comparative analysis that clearly presents:
   • Product: The exact name of the item in question.
   • Doc UP: The current unit price, as entered from the supplier's document.
   • Purchase Cost / Previous Doc UP: The last unit price recorded in the system for that product.

The user is offered two clear options: Close, to cancel the save and investigate the discrepancy, or Continue, to consciously accept the new price and update the reference purchase cost.

Strategic Implications and Recommended Actions

This alert is a crucial decision point that can trigger multiple managerial actions:

• Validation of Operational and Invoicing Errors: The first action is checking data integrity. The alert may signal:
  • A data entry error by the operator (if the purchase was not automatically imported from e-Factura).
  • An invoicing error on the part of the supplier.
• Analysis of Real Price Increases: If the increase is legitimate, the alert serves as a trigger for strategic decisions:
  • Updating Sales Prices: The commercial department can be notified immediately to analyze the impact on the margin and adjust sales prices, thus protecting profitability (if the iFlows automatic sales strategy Purchase Cost / Last Entry + Markup is not used).
  • Negotiation with Suppliers: A series of frequent alerts from a specific supplier may signal the need to renegotiate the contract or look for alternative sourcing.
  • Inventory Management: Faced with a price increase, the company may decide to purchase a larger stock before the new price fully takes effect, if contractual terms allow.

Key Business Benefits

• Proactive Cost Control: Identifies price increases in real-time, not at the end of the month in accounting reports.
• Error Reduction: Minimizes the impact of operating or invoicing mistakes on company finances.
• Evidence-Based Negotiations: Provides concrete and immediate data for discussions with business partners.
• Protection of Commercial Margins: Allows for a rapid reaction in adjusting pricing policies to maintain established profitability.