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Finance | Project Operations, Human Resources, ...
Answered

Item cost to be zero on specific item Site combination

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We are using Weighted Average costing, our storage dimension has Site specific costing.

Business requirement is for any sales return the cost booked in system should be Zero , How can that be achieved.

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  • André Arnaud de Calavon Profile Picture
    301,035 Super User 2025 Season 2 on at

    Hi Yashpal,

    Why does cost for the the returns needs to be zero? If you go ahead, it will have impact on the weighted average. I do assume returned items should represent a certain value.

  • CU09060724-0 Profile Picture
    on at

    Hi Andre,

    Thank you for your Response,

    We have concept of customer owned inventory, these parts come back as Depot Repair as part of warranty repairs. i don't want inventory to inflate when i don't  have any real cost associated with the parts.

    i created a new site for Depot , that's different from my MFG site. this keep my WA good specific to site, anything coming back to DEPO site need to be defaulted to cost Zero

  • Suggested answer
    guk1964 Profile Picture
    10,888 on at

    How do you hold the Customer inventory not yet shipped? Is it already invoiced? Do you hold it at zero value? Logically if you ship it then the return should come back at the shipment value - which I assume is the value in your system of the customer held inventory so if you reference the financial lot id on the return order then  that should take care of it.

    You can search previous posts for more about that.

  • Verified answer
    André Arnaud de Calavon Profile Picture
    301,035 Super User 2025 Season 2 on at

    Hi Yashpal,

    Understood. Thanks for the clarification. If you are using a separate site/warehouse you can achieve it, but it also needs some attention as you can't just use transfer journals to move goods from the Depot to MFG or vice versa as that will have impact on the pricing again.

    There is no good solution to ensure a zero cost price will be used in one site. Potentially, you need some validation customizations to prevent getting items with a cost price in the depot site.

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