How to fix Purchase Invoice and Wrong Product Cost

ReisC
ReisC Member Posts: 13
edited 2012-05-23 in NAV Three Tier
Hello,

Recently this situation has happened with the client and we've been having issues attempting to come up with a solution.
    Client created a Purchase Order for a product several months ago but the unit cost was very low by mistake. This year, when analyzing the unit cost we noted the situation and due to a development we cannot change the unit cost when creating a Purchase Invoice with the correct cost through the Purchase Order. So the Client created a Purchase Invoice separately and associated it with the Purchase Order to give the correct cost. By mistake however, he inserted the unit cost in USD instead of the PO's currency, which ended up inflating the cost very high. To fix the Purchase Invoice and the Unit Cost we decided to try creating a Purchase Credit Memo, using the "Copy Document" function to nullify the Invoice, the Shipment Item document associated with the PO and the unit cost impact. Then we could try again from scratch. However we are not able to do that because there were Transfer Shipments that partially consumed the Shipment Item document reception, giving us this error:
Entries applied to an Outbound Transfer cannot be unapplied

To get around this issue we attempted to remove the links to the movements that were consuming the Purchase Order through an option in Classic called "Remove Application". That way we'd manually set each movement to consume another Purchase Order or transfer reception so we could have all the quantities assigned to the Shipment Item document.

Sadly the same error occurred when attempting this:
Entries applied to an Outbound Transfer cannot be unapplied

The last option I can think of is using the Revaluation Journal to reset the product stock to the correct price, and that would fix the values in Merchandise in the Chart of Accounts. But it wouldn't fix the value related to the Supplier and the Purchase Invoice wouldn't really be nullified.

Is there any other mean to go back on the Invoice and reset the product unit cost to the original value before this mistake happened?

Comments

  • Alex_Chow
    Alex_Chow Member Posts: 5,063
    ReisC wrote:
    Is there any other mean to go back on the Invoice and reset the product unit cost to the original value before this mistake happened?

    Unfortunately, there's no easy way. Your best bet is using the revaluation journal, but even that exhibits wierd behavior sometimes.
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  • ritesh.singh
    ritesh.singh Member Posts: 123
    Hi,

    You can take care of cost by revaluation journal and you may use debit note using G/L Accounts in line to adjust ledgers.

    Just a wild idea :)
    Thanks,
    Ritesh K Singh
  • ReisC
    ReisC Member Posts: 13
    That's actually what we did. However it caused some other problems that were a bit hard to fix.

    Since the Item Shipment document was in December 2011, the revaluation was also done at that date.

    However the Purchase Invoice was in May 2012. So the values that entered the Supplier and Merchandise ledger were inserted in the Chart of Accounts in May.

    Doing the revaluation in December meant we'd have the counter value several months before in Supplier and COGS as a consequence of adjusting the product cost.

    Since we still had a big value in the Supplier and COGS ledger that was not actually real and wasn't nullified by any operation we've done at that point, we decided to directly insert the counter value in those ledgers.

    Unfortunately we had to do it in December, with the Purchase Invoice being in May. This created a huge gap from December to April where the Supplier and Merchandise ledger were actually in Credit values not Debit.

    We spent a lot of time reassessing the situation and coming up with the right amount and accounts to fix all of this but it wasn't pretty too look at.

    Apparently we didn't mess up anything while trying to correct the original mistake. It just caused so many problematic situations that attempting to fix them ended up causing another issue.

    I suppose this can be considered fixed now unless someone comes up with a miracle solution. The best way to approach this is hoping nobody makes an incorrect Purchase Invoice with goods and then consumes the Purchase Order through transfers.

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