Need to fix item unit cost error

couberpu

Hi All,

User at work entered wrong cost on purchase line and received the item. Now the Unit Cost of it is 60 instead of 1.287. Make it worse, several sales order got the wrong cost and posted into sales invoice.

I need help on what is the proper way of fixing the unit cost error and p/l %.
I tried Revaluation Journals without any luck.

Thanks,
CouberPu

sajidhanifkhan

You have to issue a return orders for purchase and sales with same amount which has been posted with wrong price. Afterwards create new PO and sales orders with correct cost and price.
That wud be the most easiest solution.

good luck!!

Sajid

ara3n

I'm guessing by received that you've actually invoiced it.
What costing method do you have?

And also have you run adjust cost after reevaluation?

AdamRoue

Do not worry about it

Post the purchase invoice for the correct value and the adjust cost entry will update all of the related entries - the only areas not altered are the original entry on the sales line etc, although the underlying data is correct.

Alternatively you can revalue it, but you are then only doing this in advance of what the invoice would do anyway.

If you are average costed this may alter depending upon the period of costing undertaken and the time elapsed between receipt and invoice, but then that is your call.

couberpu

Thank you all.

I do not have purchase return and I could not post purchase invoice yet.
My costing method is FIFO. I did run cost adjust already....

So this were the steps I did so far:

1. Realized that the cost was wrong and sales invoice had negative profit.
2. Corrected the purchase line cost and ran cost adjustment, no luck.
3. Made negative item adjustment with incorrect cost of received location and positive adjust back with correct cost;ran cost adjustment. The item unit cost was down but still too high.
4. Stopped just guessing around and posted online asked for help.

I am not too worry about the sales line cost but I do want to make sure the future sales with proper cost.

Thanks,
CouberPu

AdamRoue

With 2 correcting the purchase cost on the line is like shutting the stable door after the horse has bolted

With point 3 making a negative adjustment has no affect as you are not affecting the stock you booked in and sold.

The posting of the purchase invoice will resolve this, you can as suggested post a revaluation journal, but do not do any more processing in the manner you have you will only make matters worse. Go into your test system, replicate the issue and try and corrections in there, but if I was you I would just wait for the invoice.