how to show NetSuite is configured to calculate material cost based on the underlying purchase order.

AI generated answer (using internal Slack threads):

In NetSuite, the configuration to calculate material cost based on the underlying purchase order can be demonstrated through the following steps: 1. Enable the necessary features: Navigate to Setup > Company > Enable Features. Under the 'Accounting' subtab, ensure that 'Inventory' and 'Landed Cost' are checked. This will allow you to track inventory items and their associated costs. 2. Set up items: Go to Lists > Accounting > Items > New. Create your inventory items and ensure that the 'Costing Method' is set to 'Average'. This will allow NetSuite to calculate the average cost of the item based on all purchase orders. 3. Create a purchase order: Go to Transactions > Purchases/Vendors > Enter Purchase Orders. Add the items you've set up and enter the cost per item. This cost will be used to calculate the average cost of the item. 4. Receive the items: Go to Transactions > Purchases/Vendors > Receive Orders. Select the purchase order you've created and receive the items. This will update the average cost of the items based on the cost entered in the purchase order. 5. Check the item cost: Go to Lists > Accounting > Items. Select the item and check the 'Average Cost' field. This should reflect the cost based on the purchase order. Remember, if you want to allow overage on item receipts, you need to enable the account preference

Allow Overage on Item Receipts

(Setup > Accounting Preferences > Order Management). Also, consider looking into the 'Match Bill to Receipt' and the 'Post Vendor Bill Variances Process' for handling discrepancies between purchase order quantities, item receipt quantities, and invoice quantities. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******