When items are returned to vendors we should have ability to reverse landed cost entries as well. Currently one gets a huge inventory adjustment as the amount attributable to landed costs are now included with cost variances in return of goods. This affects all the landed cost accounts for analysis purposes.
Furthermore, since we have all the details pertaining to the receipt and the costs associated with it, why can the items not be returned at the actual costs received instead of the lastest costs. This causes additional reconciling work . This has been mentioned under a seperate heading.
Apparently this has been known by Sage and why they did not build this into the product when PO went to business framework is rather upsetting and frustating. Can we not make the distribution modules better with respect to these variances and speed
by: Avron K. | over a year ago | Sales & Distribution
Comments
Customers must make a journal entry every month to reclassify from the PO Variance GL account to the original Landed Cost GL Account for all PO Returns when the original PO Receipt included Landed Cost. This is not only time consuming but an additional step that should not be required.
If several POs are being returned due to pricing discrepancies once the invoice is received, there is a major room for error when calculating the journal entry required to reverse the original entry. The ability to reverse landed cost at Return of Goods Entry will help ensure accuracy. Reversal of landed cost at Return of Goods Entry will also improve efficiency since it will eliminate the additional steps required in the calculation and journal entry.