Currently the posting to COGS for a drop shipped item is made when receipt of invoice is performed for the drop-shipped Purch...
by: Roberta V. | over a year ago | Sales & Distribution
Votes
35
Option to post to COGS (cost of goods sold) when a dropship item is sold.
by: Roberta V. | over a year ago | Sales & Distribution
Comments
Several of my clients get tripped up on this every year. We need to associate COGS at the time of invoicing, not at the time of PO processing.
The main business reasons why this functionality should exist is because gross profit in the invoice detail is incorrect. We have a number of clients who pay salesperson commission on gross profit and we can't use the drop ship functionality because of this. It also throws off any gross profit report written against the invoice details.
Either allow the COGS function to work with the drop ship items or allow the purchase order line items to be associated with the sales order so duplicate keying need not be done to create the purchase order. Many times a purchase order is a duplicate of the sales order with the exception of the costs. Rekeying the purchase order after setting up the sales order is duplicate work when the direct ship allows you to tie the two together.
If Drop Ship Sales Orders are posting by Division, then COGS for PO in Receipt of Invoice should be posting by division. Otherwise your reports by division will never be accurate without constantly doing correcting GL entries. Please Allow Receipt of Invoice to recognize if it is a Drop Ship and post COGS by division of the Drop Shipped Sales Order.
This neededs fixed ASAP, drop ship functionality is basically useless as our margins reports will never be correct. Also the fact that drop ship transactions don't hit the "transactions" tab in item mainteance is equally as frustrating. This is our #1 pain point with Sage.