Costs Of Items Back Into Stock On Credit Memo

Jonathan2708

Hi,

I have an item with a 'Last Direct Cost' of 115.00 and an 'Indirect Cost %' of 11%, giving a 'Unit Cost' of 127.65. I sell a unit and the cost of the sale is 127.65. When I then raise a sales credit for the item, the Unit Cost on the credit line is 115.00. I thought the Unit Cost always defaulted to the Unit Cost on the Item Card. So in this instance the stock value has reduced.

Can anybody comment on why for credit memos the default unit cost is the direct cost, not the unit cost from the item card?

Any help appreciated,

Jonathan

nadr61

Please verify if you have a check mark in Sales and Receivable setup, Exact Cost Reversing field. Otherwise the system use Last direct cost from Item card.

Jonathan2708

Hi,

Thanks for the reply. No we are not using Exact Cost Reversing. I thought if this was not used then the cost would come from 'Unit Cost', not 'Last Direct Cost' - surely this cost including indirect costs should be used.

Exact cost reversing was considered, but often stock might be returned upto a year or so after being sold, and it's not easy to identify the sale it came from. Plus the users don't want to have to go as far as selecting item ledger entries against sales.

Jonathan

Jonathan2708

Resolved this - turns out there was some custom code to default to Last Direct Cost instead of Unit Cost on credit memos only.