ISTech Support Forum

ISTech Support Forum
http://www.istechforum.com/YaBB.pl
Evo-ERP and DBA Classic >> Sales >> Zero cost for returned item
http://www.istechforum.com/YaBB.pl?num=1077815411

Message started by Mike_Habich on 02/26/04 at 09:10:10

Title: Zero cost for returned item
Post by Mike_Habich on 02/26/04 at 09:10:10

When we process a returned item through a sales order, sometimes (always?) the COGS shown in the COGS or commission report during SO-G Post Invoices is zero. No posting is made to inventory or COGS accounts, and the product is given a zero cost in inventory. We use FIFO costing.

Why?

How to fix (both after-the-fact and to prevent future occurences)?

Title: Re: Zero cost for returned item
Post by Mike_Habich on 03/01/04 at 09:27:20

In the past when this has happened, I've posted a GL transaction from Inventory to COGS. That fixes GL, but not item cost, and probably doesn't do good things to invtry book value. Better idea?

Title: Re: Zero cost for returned item
Post by Lynn Pantic on 03/01/04 at 15:35:17

If you are processing a return (rather than a void which is tied to a specific original invoice) how would the program know what value to use for a cost? It really needs to know what the original invoice was. I believe if you are on Average Cost rather than FIFO or LIFO, it uses the current average but that really isn;t right either.

Title: Re: Zero cost for returned item
Post by Mike_Habich on 03/02/04 at 08:10:27

That makes sense...so now, what do we do about it?

Program: Is there a way to enter cost of the returned item? If not, can this be added?

After the fact: How can things be set straight now?

Title: Re: Zero cost for returned item
Post by Lynn Pantic on 03/02/04 at 10:47:38

Longer term, the RMA program under development will be able to identify the original invoice and from that get a cost. May also have the ability to manually enter a cost.

Short term, you could use IN-C to adjust the $0 part out and then adjust it back in at your chosen cost. That would update both inventory and the GL.