Cost of Goods Returned

slmaluwa

Hello
A small confusion arose today with regard to the cost of items returned from buyers and would like to share it with you all for opinion.

Company Policy: Average Costing
Average Cost Calc Type: Item & Location & Variant

Say, a customer who bought the items at a particular price returns the goods at later date (after 6 months). Now, the current price is much higher than the old price. We use credit memo to enter the information and manually alter the unit price to have the OLD price. All ok.

Now, the finance guys say that they want these items to be valued at the price it is returned. Since many of these items (now in bad shape) goes into re-production as a raw material. All these items are received and stored in a separate LOCATION.

How Navision treats cost of these items? If it is taking the general average cost, is there a way to make it consider the returned prices for costing?

TIA

Alex_Chow

To set the returned cost to be the same as the shipped cost, ensure the Exact Cost Reversing is checked on on the S&R setup.

On the sales lines for the credit memos, ensure that the Applies-from Entry No. is set to the proper costing tier.

slmaluwa

hi Alex
This is something different.
I think my post was not clear. The client want to have price they are entering in credit memo to be considered for the cost of the items too.

is it a proper accounting way????

Alex_Chow

Whether or not it's proper accounting, it's up to the company's accountant to decide. But typically, this is not normal.

In any case, by setting the Unit Cost (LCY) field to be the same as Unit Price, it will achieve the cost of the return goods to be the same as the unit price being credited to the customer.