Using standard cost method
When a purchase return is completed, it returns is at standard cost and not the PO cost. Thus causing the return dollars to not match the original receipt. The difference which is sitting in PPV then needs to be corrected.
by: Aaron N. | over a year ago | 6 - General Enhancements
Comments
We experience this problem as well.
Standard cost and average costed items will use the Std/Avg cost. All others will use the PO cost if it is available in inventory. Standard should "correct" itself when the debit memo for the return is posted.
This is true for Standard and Average costed items, but other costing methods try to use a cost that is equal to the PO, if that cost is still available in inventory. This change was made in version 7.3. The cost should "correct" itself when the debit memo for the return is posted.
We use average cost method on our valued inventory items and when a PO Return is done, it should be able to connect to the original PO Receipt so that it is returned at the same price that it was received. Currently, the system automatically uses the current average price of the inventory on hand for the return. This causes Cost Tier Adjustments.
We use average cost method and have very unique inventory items. We are having a significant amount of problems as we return items prior to receiving the invoice and usually will never receive an invoice due to the unique items. This causes a number of cost tier adjustments and if they are missed the unvouchered account and the inventory is over stated. This causes problems during an audit. The vendor receipt is in the SQL database so it would seem an easy fix to pull up the original receipt line and have a reversal of the original input.
Agreed -- average cost items should be returned at original PO receipt cost, not current average. Not all returns have a debit memo, particularly ones that are done to correct an error in receiving.