Dynamics Community Forum Thread Details

Cost

I'm trying to understand how item cost is determined in different scenarios and haven't found any examples for the scenarios I'm looking for.

How is cost determined in the following situation?

We recieve qty 1 of an item in from a return
Inventory for this item is now 1
The last time we had transactions for this item was 2+ years ago on a return, transfer back to regular inventory from retruned area, then sent back to vendor for credit.
The return sales transaction document has a cost for this item
The item is inspected and an item transfer entry is created to move it from returned to regular inventory
Valuation method = average perpetual

Since the sales document has a cost for this item, I'm trying to understand why we have to enter the cost during the transfer as it's coming up zero or why it's not at least using the last PO cost even though it's 2+ years old.

Warehouse staff is sometimes transferring items back to regular inventory without entering cost which creates problems as you can understand. I'm not sure if it's appropriate for warehouse staff to even be involved in setting cost for inventory.

Also....

For one item on the cost change history report, I noticed an adjustment to $0 cost when the sales return was posted. The item had a cost before the return came in, but when we posted the return, the cost changed to $0. There was a cost for the item on the return document.

Thanks for any insight!

Jason Russell

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