We manufacture an item at a cost of say $3000.00. We can see the part go into inventory at the correct cost. We issue sales order and invoice. We can see the cost coming out of inventory correctly. Curtomer returns item for what ever reason and we issue credit against the sales order. Item goes back into inventory at different cost. Sometimes it’s higher than original cost, sometimes lower. Should it not go back into inventory at original cost when credit is issued and posted? Trying to get a handle on this.
Thanks
The cost for a return/credit will default to the item’s current “unit cost”. Which likely will have no bearing on the cost of sale for what is being returned. To get the behavior you desire, use “Exact Cost Reversing”. This will require you to relate the credit to the original invoice.
Thanks, doing some testing and looking good. I take is this is strictly for items being returned by issuing credits and going back into inventory at the same cost as they were originally invoiced out. When we issue a credit, we use the copy document function and select the original invoice.
You need to set the applies-from/to fields on the lines. “Exact Cost Reversing” forces this. Just picking the document is not enough,.
Thanks for the info. The applies-from gets populated automatically, just not sure what to select for the applies-to? When I do a lookup all I see is a purchase receipt, some inventory adjustments, and the previous credit memos I did for testing. Thanks again for the info.