Credit Memo and Adjust cost

sKarthikt

My Item's Costing Method is average.
I am assuming unit cost of the Item in use as 50Re/-

The Issue is

I have an Invoice posted for 1 qty and 1 unit cost.But my exchange rate in Invoice is 1$ is 25 re/- Instead of 43

Accounts hit are
Trade Creditor -25
Purchases Raw Material - Imp 25
Direct Cost Applied -25
Raw Material 25


So I posted a credit memo with the same exchange rate 1$ is 25 re to reverse the Invoice
Accounts hit are
Trade Creditor 25
Purchase raw material -25
Direct Cost applied 50(ACIE adjusted the cost of the Item to 50 though the credit memo posted with 25)
Raw Material -50

So there is a difference of 25 sitting in the raw material even after the transaction is completed.


As I did not check exact cost reversal this happened.

So I checked the Exact cost reversal and to reverse the above credit memo posted another credit memo

Here I have selected Doc Type Posted Credit memo,Doc No.(Document No),Include header and posted the credit memo

Accounts hit are

Trade Creditor 25
Purchase raw material -25
Direct Cost applied 50
Raw Material -50

In the second credit Memo
Instead of reversing the first Cr memo, the same amounts are getting hit and the total difference of my RM account rose to -75.

Please let me know if this is a bug in purchase credit memo.

please suggest if there is a way out to reverse the credit memo above.

regards,
Karthik.

mgmutha

Hi Kartik,

1) Why you have posted 2nd Credit Memo for reversing 1st Credit Memo ? To rectify 1st Credit Memo you should post Purchase Invoice.

2) Have your Inventory has gone to -ve because of 2nd Credit memo ?

So check it the above two points and hope you will get answer.

ssingla

Have you checked the application entries? If wrong application has been done then application worksheet can be used.

vicky_dada

One question here:

Posting a fresh invoice(Inv1) and using Application work sheet, I have re rapplied manually to this invoice(Inv2). This has reduced the actual cost. Perfect!

Inventory setup : the costing method is average, and average cost calculation period is set to MONTHLY,

Making Excact cost reversing to YES in purchase and payable setup, I have posted a fresh credit memo for Inv1.

As per my setup, system will create again adjustment entry for all credit memos. this is again we are going back to square one.

Let me know if I am in correct page