I seem to be having a continuing annoying little problem with credit memos done in OE not picking up the new costs of the inventory item hense leaving large residuals values under the inventory Item being credited.

I'm not really sure if this is a OE problem or Purple PO problem but I suspect it is OE since the correct values of item do seem to be getting sent to Inventory from Purple PO's.

My situation is this. ie: A customer returns a machine they purchased for various reasons. The machine is returned to the manufacturer and we receive the credit. Now when the machine is credited by the manufacturer we do not receive full value back. It may of been damaged or there is restocking charges and there is the cost of the freight to return. Our customer is then credited for what is fair and what we have received back. The problem being is this customers invoice is credited for a value much less then the price it was purchased for, but the cost that is actually credited is the original cost of this machine purchased and not the costs less restocking etc. that we received back from the manufacturer. This is leaving the difference in cost (residual) under this inventory item and also reflecting incorrect cost of goods sold when this credit memo goes through. I have tried both to issue credit memos without referencing the original Invoice and also credit the orignal invoice. Both ways work the same way and will not pick up the new costs from this inventory item. I believe it may be going by the most recent unit cost showing in the Inventory item instead of picking up the actual combined costs.

With some of these machines in the mid 50k range this is a lot to write off and not be be properly alloted to cost of goods.

FYI, In IC we do use average costing, and accept negitives.

Is there some settings that need to be adjusted so this will work like ACCPAC did or is this a flaw that needs correcting?

Thanks for your assistance.

Treasure

When a credit note is created for an item, the Unit Cost is viewable and editable on the item detail screen. It contains the unit cost that was posted with the invoice (as typically this should net to zero after crediting).

I assume that you are wishing to edit the unit cost from the costed amount from the invoice to something new. As this desired value likely isn't stored anywhere within the database, the solution is to edit the Unit Cost while entering the credit note to reflect restocking fees, etc. Then OE posting and Day End will apply the appropriate costs.

Accpac Plus OE does the same thing...

Yes, I have tried many times to edit the unit cost on the detailed screen. It will let me change it but when posted goes back to the most recent cost, as the cost of rtn.

Hello Treasure,

If the Credit note does not refer back to the Original Invoice, the Most Recent Cost appears as a default cost for the Return. However, if you edit the Unit cost, the edited Unit cost is passed on to the Item with an increase in Quantity on Hand.

If the item is not being returned to Inventory for resale, you should uncheck the ?Return? option in the item detail on the Credit Note. This way, the stock levels and costing for the remaining items will remain unaffected.

Thanks for your assistance. Unfortuately this really isn't telling me anything I don't already know. It's this edited unit cost that is not working in my opinion.

Well I guess I will continue to play around with this until I can figure out how to make this work since it appears your saying it should. It might be my settings as to why I can't get the value I need on the customer credit memo.

Not returning the goods to stock is not the answer since that would reflect zero cost of rtn on the credit memo to the customer.

Treasure

Hello Treasure,

Check the specifications that are being used to print your credit memo. Perhaps the wrong field is being picked up?

Hi Treasure,



Where are you looking to see the cost used for the credit note? Try from Inquiries and View Credit Notes (instead of Invoices). Also the credit note audit list report shows the edited cost. Also check the Total Cost for the item, which is updated by the edited cost amount, not by Most Recent Cost.

And from Andrew's suggestion, Spec code D19 prints the Unit Cost on the printed credit memo specification - the edited cost amount - and D21 prints the Extended Cost.

Which version of Order Entry is installed? Check from Help/About.

Thanks for your responses, I'm about to go home but will check into this tomorrow.

Thanks for the tip on spec codes I will definately check that. hmmmm, you maybe right it may be showing the most recent unit cost when going to view credit instead of actual amount processed.

When I'm referring to the costs processed I'm usually referring to the cost that apprears on the OE CN Audit list for my cost values that go through for day end returns. My OE audit list is what I will go back to when I audit for the large residuals showing on my Inventory Valuation. I am usually the one that processes these large returns so I know I have tried to put in the new costs that I want to show up against these credit memos. My audit list values are correct, and show correctly in GL.

I just ran some test invoices and credit memos and yes it did change it to the new edited value. Quite to my surprise. Not sure why I wasn't able to change them on my large credits I put through in the past. Perhaps this was previously addressed and fixed in an update? I didn't have a real recent experience with this but it has been something I wanted to ask you about for sometime but didn't get a chance to til now. If I have this trouble again I'll let you know. Looks like I'm good to go now. Sorry I took up your time and thanks for the help.

OE version is 8.0A

Treasure