Sales Profitability

jacky10 · 2007-08-08

hi

consider this scenario...
A Sales Order is raised for an Item X.. It is new, so the average cost is obviously zero.

based on that requirement, the purchase department raises a PO and SRV is made but not invoiced due to the delay in getting the invoice from suppliers..

now by mistake if that sales order is executed (i.e Shippd and Invoiced) my sales profitability shows 100% because the cost at that time of SO creation was zero..

now how to solve this issue?... wud appreciate ur guidance....

AdamRoue · 2007-08-08

Use expected cost posting and put in a cost around the cost you will post. It is not really an issue as the costs flow through, but you need to control your process.

Alex_Chow · 2007-08-08

When the purchase receipt is posted, you'll get the expected cost when you drill down to the item ledger and value entry.

This is of course after you run the Adjust Cost - Item Entries process.

jacky10 · 2007-08-10

agreed... but the Sales Order is Booked before the SRV or Purchase Invoice is made.. so the cost in SO is zero...

AdamRoue · 2007-08-10

Because you have set the system to do this, if you had not had a zero cost on the item it would have taken the cost specified as expected.

David_Singleton · 2007-08-10

You will always get this problem when using the costing method GIGO :shock: . You need to change to a different costing method

Alex_Chow · 2007-08-10

jacky10 wrote:

agreed... but the Sales Order is Booked before the SRV or Purchase Invoice is made.. so the cost in SO is zero...

The problem has been discussed on this forums before. There has been a lot of responses to your question. Try seaching.

Sales Profitability

Comments

Categories