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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Purchase return cost e...
Microsoft Dynamics AX (Archived)

Purchase return cost effect on invent trans

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Posted on by Mohammed Jabir OM 151

Dear Axians,

I have posted one purchase return order as below

Qty = 10 pcs

Purch Price = 25.00

Total = 250.00

In my case, invent trans need to be as below

Qty = -10

Costamountposted = 10.00

But I dont understand, in my case some purchase return have invent trans as below

Qty = -10

Costamountposted = 8.70 (values are dummy for eg)

Costamountoperation = 1.30 (values are dummy for eg)

I checked the voucher and found that 1.30 is posted by posting type "Purchase expenditure for product". 

So in my case, if i had made a purchase of 10 pcs with 250.00 and made a return purchase order of 10 pcs with 250.00 itself. Inventory qty balance will be 0 pcs, but value of 1.30 exists there. This is creating so many issues in inventory values, costing etc.

Is this normal situation and why ?. How to tackle this case.

My costing method is weighted avg dated.

Thanks in advance.

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  • Suggested answer
    Richard Wehmeyer Profile Picture
    Richard Wehmeyer 1,004 on at

    It sounds like you have other transactions on the item.  Try marking the PO to the return order.  If they have both been invoiced you will have to do a recalculation to see the effect of the marking.  

  • Mohammed Jabir OM Profile Picture
    Mohammed Jabir OM 151 on at

    Dear richard. Yes.

    I just gave one example of purchase and return.

    The product is vegetable item and it have daily purchases and returns. And its very hard to do marking and all.

    User is stating simple question.

    Why when he is posting return po of value X, its not fulling deducting from inventory value and causing the cost of product to increase and by the way generate wrong gross margin reports.

    Thanks in advance.

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Good Morning Mohammed,

    When recording a purchase order return you basically issue items from your warehouse.

    As AX defines and calculates the issue price you might end up with a difference.

    If the difference is significant then you have to use marking as Richard mentioned to ensure that the receipt and issue prices are identical.

    Another option would be to use standard costing that can also guarantee identical issue and receipt prices.

    How many return transactions do you have to record a day and why is marking very hard to do?

    Best regards,

    Ludwig

  • guk1964 Profile Picture
    guk1964 10,888 on at

    Its usual; to return at the order cost, rather than the inventory cost (which is from many orders) -  so reference the financial lot id - . i.e.mark - see https://community.dynamics.com/ax/f/microsoft-dynamics-ax-forum/246776/how-to-link-a-return-order-with-an-existing-purchase-order/494822#494822

    https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/procurement/tasks/create-purchase-return-order

    .

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