PO Line for .01
At one point our organization was strongly encouraged to never put .01 on a PO line for cost just because the buyer didn't know the price. Now I can't remember what the reasoning behind that was because at times the buyer really doesn't know what the price is going to be, but they still need to issue the PO.
Does anyone have an answer for why this is a poor practice? What's the difference if the buyer puts .01 or $185 if the true cost of the item is $200? Either way it is wrong, so would .01 make a difference? FYI, we also use average cost for issuing inventory out, so not sure if that is affected??