We face an issue with COGS calculation is not including the Landed Cost that we posted using Charge (Item) in Purchase Invoice.
To illustrate my scenario, an inventory item was purchase for $1,000 via Purchase Invoice. There is landed cost of $100 apply, so we have recorded it as Charge Item in seperate purchase invoice. Below shows the Value Entries of the item mention. FYI, the item is "FIFO", and Automatic Cost Posting and Expected Cost Posting to G/L are both enabled.
When I sell this item in Sales Invoice for $2,100, I'm expecting the COGS to be $1,100 (Stock+Landed Cost) instead of $1,000 (Stock only). Is there some setting in BC that I miss out? Or my understanding regarding the entries is wrong?
Hi Gavin,
You are right. Checking in the "Inventory Setup", the Automatic Cost Adjustment is set to "Never". After changing to "Always", the COGS is calculating correctly now. Thank you!
Hi,
Is the option "Automatic Cost Adjustment" switched on in the Inventory Setup?
If not I suspect you'll need to run "Adjust Cost - Item Entries" to update the COGS on the Sales Invoice. (you can then see if another Inventory posting occurred by checking the G/L Register page)
If this is switched to "Always" it could it be the Sales Invoice was issued from a different FIFO receipt line than the one you applied an item charge to? You could check this in the "Applied Entries" in the "Item Ledger Entries"
Thanks
Gavin
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