One item (we will call it item A), was partially received and invoiced in a single line PO. Unfortunately, item A was invoiced with an incorrect purchase cost price for some quantities. To reverse this, credit notes were created against those incorrect invoices and were re-invoiced with the proper value ( the purchase price for item A is fixed for the PO). The vendor account is okay and our inventory G\L account is okay.
After invoicing the first sales order for item A, we have noticed that the cost of goods sold was incorrect as the system used the average cost that incorporated the wrong purchase cost prices mentioned above without regard of the credit notes and the re-invoicing to adjust the purchase cost price. When making a credit note sales invoice the system will not use the same average cost when returning the items back into the store, instead is uses the base cost price found in the item details form for item A.
How to adjust the average cost?
is there a need to make a credit note for sales invoice and then re-invoice after adjusting the average cost?
Please note that the inventory closing has not been done yet.
The following is the inventory model settings for item A:
Financial Negative Inventory: true
Post Financial inventory: true
Inventory Model: weighted average
Include physical value: false
fixed receipt price: false
*any option not mentioned is false
Item A's related settings in the item details form:
Setup->Price Update->Latest Purchase price: checked
Setup->Price Update->Latest Cost Price: checked
Setup->Price Update->Base Price: Purchase Price
