One of the issues I have had with many accounting applications over the years is that they DO NOT handle COST properly on a credit memo or RMA. Sage is not different. When you issue a credit memo or create an RMA, you should have to pick the cost tier associated with the return. If you don't then you end up with wrong costs assigned to the returned item.
I understand that Sage now creates an OVERDIST tier and uses the "Last Cost" for the valuation of this item. This again is not how this should be done, all this does is make more work for someone, as they now have to run the evaluation report at the end of each month and look for these OVERDIST items. They then have to now look up the correct COST associated with the original sale of the item and then do an Inventory adjustment to correct the COST. Next they need to do a journal entry to move the value in INV Adjustments to the appropriate COGS account.
Simply designing your software to allow, during SO Credit Invoice entry or RMA entry the ability to select the appropriate cost tier used on the original invoice, ensures accurate accounting data and cuts out all the extra work to fix it.
by: Kevin T. | over a year ago | General Enhancements
Comments
Paperless invoices need a way to attach signed delivery ticket or signed deliver ticket when emailing invoice
I agree with person above. Since most cases we cross reference original invoice and we should use the same cost that was used on invoice, this will then facilitate the correct commission credit.
The issue I have with the OVERDIST tiers created is they use a receipt date of 1/1/1801 - why not use the transaction date? I use receipt dates on reports to determine obsolete product and what needs to be scrapped out of inventory.
I was going to get on here to post the same problem. I just experienced this and it has cost me valuable working time and support $ to help resolve what should have been prevented in the first place. Let us pick the proper cost tier or at least allow it to choose the related tier that a return of goods would use instead of the unrelated FIFO schedule. I am not returning an older purchased price tier I am returning the current or other specific price tier item. This is just common sense that needs to be written into Sage. If there is security concerns with allowing this, then place it within the roles so that we can manage it accordingly. Thank you for posting this as it is critical and should be on the next update to SAGE 100.
This should be an urgent fix.
it should work correctly for Serial items as well. If I return a SN, it should come back at the same cost it went out at. I should not have to manually override the cost to make it match.
FIFO inventory created during a CM should absolutely not use OVERDIST. Create a new normal cost tier the same way any other inventory receipt would.