Applies to Product - Dynamics 365 Commerce
What’s happening?
The return of merchandise in the POS system does not reverse the cost of goods sold and does not reflect the return in inventory, leading to discrepancies between accounting and inventory modules.
Reason:
This arises when a product is returned without a reference to a sales invoice, resulting in no cost being recorded. This behavior is particularly noted when using the "Weighted average date" inventory model, as there is no reference to derive the cost from, leading to a zero cost entry in the inventory.
Resolution:
- Establish a cost price: Set a cost price for the product to ensure that the cost does not register as zero. For example, a cost of 120.00 can be established.
- When a sale and its return are recorded in the same extract, the return will take the established cost, while the sale will take the last calculated cost.
- Enable last cost price: If the predetermined cost price is not initially set, enable the "Last cost price" parameter in the product. When this option is enabled, the cost price will automatically update to the last cost price once the purchase invoice is registered. This updated cost price will then be used in the return transaction.
- If the above does not meet business expectations, consider using a different inventory model, such as "Average cost," which allows for cost registration in returns even if they occur in the same extract as the sale.