In Application Global Maintenance, there is a setting (under the Costing tab) that dictates how Visual is to handle material costs for purchased materials.
Selecting “Purchase Orders” will cost the received material using the costs entered on the purchase order. When the A/P invoice is matched to the receiver, a variance amount (if any) will be taken and posted to a specified GL account.
Selecting “A/P Invoices” will first cost the received material using the costs entered on the purchase order, BUT will then be updated using amount on the A/P invoice when matched to the receiver. All inventory transactions (adjustments, issues & shipments) that occurred between the material receipt and the matching of the A/P invoice are updated to reflect their true actual costs