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We received 10 items at a cost of $10.00 each. We were invoiced at $11.00. We should have been invoiced at $10.00 which is the correct cost. The item card shows $11.00. How do I fix this issue.
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Thank you Mariano. We received the item at the correct cost of $10.00 so no need to adjust the cost. And yes we would do a credit memo to fix the payable. My dilemma was the item card being updated for the invoice price rather than the receipt cost (seems like a quirk of GP). I can see now that the receipt cost is what hits COGS upon sale rather than the item card cost or invoice cost. The easiest answer is to just adjust the current cost under Item Maintenance as you suggested.
Two ways to deal with this:
1. You can perform a cost layer adjustment for the receipt, under Inventory > Utilities > Adjust Cost; update the current cost under Item Maintenance; and enter a credit memo in payables for the overbilling; or,
2. If none of the items from that cost layer have been sold and an invoice has not been entered, you can enter a straight up Purchasing Return and re-receive the item against the same PO at the correct cost.
If the items have been received, the invoice has been posted, and the items have been sold, you will want to select an Inventory with Credit type return.
For more info on Purchasing Returns, please refer to [View:https://support.microsoft.com/en-us/help/936280/information-on-the-return-transaction-document-types-that-are-availabl]
I am pretty sure thats how actual cost works...unless you use standard cost then the 1.00 difference would go to a variance account...the standard cost is updated when warranted...I dont know why you would pay an invoice that is more than what was agreed on...??
We use Standard cost...and we also have a current cost which is the last invoiced price...we review this regularly and update the standard cost if it is going to be the permanent cost going forward.
Sometimes we buy things from other vendors at a higher price due to supply and demand...the difference goes to the ppv account....but if it is a one off purchase we keep the standard cost as is
The PO was $10.00, the receipt was at $10.00, but when I did the invoice match at $11.00, the current cost shows as $11.00 on the item card. The cost should have been $10.00. The vendor overbilled.
This is just what I did in the TEST company. I'm new here and I understand that they do not receive merchandise until they get the invoice for this reason.
isnt 11.00 the actual cost then??
why was it received at a higher price...what price was on the PO?
We're not using multicurrency.
We're using actual cost-FIFO
Are you using multicurrency?
Are you using Actual or Standard cost?
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