currently if you have average cost as your i/c costing method and you use an item on a job in pjc it takes the average cost for that item at the time it was used. E.G. $100. However if you return that item it puts the return cost as the average cost of the item at the time it was returned. This may be $125, $50 or any other random number depending on the status of IC at the time.
I can understand the logic of using the average cost in a system, however using this method leaves a residual cost on the job for a part that may never be used. This also has implications for revenue \ cogs \ wip reconciliation and balancing issues.
It would be nice to have the option to use the historical cost for an item (from the material usage) that is used on the material return. This would keep the pjc module and project aligned correctly and IC would receive the item at a cost and that would then be averaged out with the other stock items that are in IC.
by: Kerry J. | over a year ago | Operations Management
Comments
Agree. Item should be returned at used cost and then update average cost for that inventory item.
something really odd happens accounting wise as well when you have a P/O receipt and the invoiced cost is different in 5.3 from memory it didn't pass the cost adjustment into PJC or WIP properly, i'm going to test it in 5.6 and put up another post.
That is how the costing function in Accpac works. Same thing happens in OE shipment. Items are costed when shipped or used in PJC. Accpac does not adjust these costs to actual when the invoice is processed.
i understand how the costing system works but the system did something really odd if the exact steps were not followed in the right order with the same values, I need to go over my old notes and retest the problem.
Should be able to return material the same way you do a credit note in OE that way the return cost would be the same as material usage.