I have a following issue which I would like to explain using the following example -
Say I Have an Inventory Item - ITEM-0001
Following is the List of Transactions of Purchase
| DESCRIPTION |
QTY |
RATE |
AMOUNT |
| ITEM-001 Purchase 1 |
10 |
100 |
1,000 |
| ITEM-001 Purchase 2 |
30 |
90 |
2,700 |
| Total |
40 |
|
3,700 |
| Thus Weighted Avg |
92.50 |
Now I do a blanket return of 10 Pcs but not identifiable to which Purchase order it relates to i.e. create a PO and add a negative line.
System assumes the below cost for the Quantity returned, however as per the latest purchase price the amount is 90 thus the vendor will only pay 90 for each item.
| DESCRIPTION |
QTY |
RATE |
AMOUNT |
| ITEM-001 Purchase Return |
(10) |
92.50 |
(925) |
| Total |
(10) |
|
(925) |
The Following entries will be passed by the system
| Account |
Dr./cr. |
Debit |
Credit |
| Vendor A/c |
Dr. |
900.00 |
|
| Purchase Expenditure for Product A/c |
Dr. |
25.00 |
|
| Inventory A/c |
Cr. |
|
925.00 |
However due to this entry my Purchase Expenditure for Product A/c is having matching issues as the net balance will not be 0 anymore.
Ideal entry in this scenario should be
| Account |
Dr./cr. |
Debit |
Credit |
| Vendor A/c |
Dr. |
900.00 |
|
| Inventory A/c |
Cr. |
|
900.00 |
How can we ensure this happens in the system when my inventory valuation method is weighted average.
Incase I am not tagging a specific Purchase order during return how can I ensure that the cost posted is Purchase return Price amount i.e. receivable amount from vendor for the returned goods
