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| View Revisions: Issue #29723 | [ All Revisions ] [ Back to Issue ] | ||
| Summary | 0029723: Landed Cost differences must not trigger a cost adjustment and need to be post to a "LCV" for products valued at Standard Cost. | ||
| Revision | 2015-05-29 14:38 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Landed Cost posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only one adjustment for Goods Receipt document (not for the Goods shipment), therefore the "Total Cost" and "Unit Cost" of that transaction has changed. This is not correct as landed cost booking should not change the cost of a transaction valued at "Standard" cost, and it should not trigger the creation of a cost adjustment. Realize also that there is no recalculation of the Cost. This is correct. As a summary: The stock of this item is 0 units but the posting valuation is 20 as you can see in the journal entry of the Landed Cost. this is not correct: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation implies a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 Moreover, if you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25 which is not correct, correct cost is 5 (it is not 20+5) If the users does not navigate to the Costing tab of this product they will not realise that there is a difference between the cost shown in this report and the actual cost of the product. |
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| Revision | 2015-04-30 14:08 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Landed Cost posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only one adjustment for Goods Receipt document (not for the Goods shipment), therefore the "Total Cost" and "Unit Cost" of that transaction has changed. This is not correct as landed cost booking should not change the cost of transaction valued at "Standard" cost, and it should not trigger the creation of a cost adjustment. Realize also that there is no recalculation of the Cost register. This is correct. As a summary: The stock of this item is 0 units but the posting valuation is 20 as you can see in the journal entry of the Landed Cost. this is not correct: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation implies a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 Moreover, if you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25 which is not correct, correct cost is 5 (it is not 20+5) If the users does not navigate to the Costing tab of this product they will not realise that there is a difference between the cost shown in this report and the actual cost of the product. |
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| Revision | 2015-04-30 13:51 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only one adjustment for Goods Receipt document (not for the Goods shipment), therefore the "Total Cost" and "Unit Cost" of that transaction has changed. This is not correct as landed cost booking should not trigger any cost adjustment for a product valued at "Standard" cost. Realize also that there is no recalculation of the Cost register. This is correct. As a summary: The stock of this item is 0 units but the posting valuation is 20 as you can see in the journal entry of the Landed Cost. this is not correct: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation implies a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 Moreover, if you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25 which is not correct, correct cost is 5 (it is not 20+5) If the users does not navigate to the Costing tab of this product they will not realise that there is a difference between the cost shown in this report and the actual cost of the product. |
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| Revision | 2015-04-29 13:47 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only one adjustment for Goods Receipt document (not for the Goods shipment) and also there is no recalculation of the Cost register. that is OK. As a summary: The stock of this item is 0 units but the posting valuation is 20 as you can see in the journal entry of the Landed Cost: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation implies a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 Moreover, if you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25 which is not correct, correct cost is 5 (it is not 20+5) If the users does not navigate to the Costing tab of this product they will not realise that there is a difference between the cost shown in this report and the actual cost of the product. |
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| Revision | 2015-04-29 11:50 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only adjustment for Goods Receipt document (not for the Goods shipment) and also there is no recalculation of the Cost register. It is OK. As a summary: The stock of this item is 0 units but the posting valuation is 20 but as you can see in the journal entry of the Landed Cost: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation has a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 Moreover, if you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25 which is not correct, correct cost is 5 (it is not 20+5) If the users does not navigate to the Costing tab of this product they will not realise that there is a difference between the cost shown in this report and the actual cost of the product. |
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| Revision | 2015-04-29 11:45 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only adjustment for Goods Receipt document (not for the Goods shipment) and also there is no recalculation of the Cost register. It is OK. As a summary: The stock of this item is 0 units but the posting valuation is 20 but as you can see in the journal entry of the Landed Cost: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation has a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 If you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25. If the users does not navigate to the Costing tab of this product they will not realise that there is a difference. |
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| Revision | 2015-04-29 11:44 by psanjuan | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it and post it. Posting looks like: 20.00 € (Product Asset) - DEBIT 20.00 € (Transport Expense) - CREDIT Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only adjustment for Goods Receipt document (not for the Goods shipment) and also there is no recalculation of the Cost register. It is OK. As a summary: The stock is 0 but the posting valuation is 20 but as you can see in the journal entry of the Landed Cost: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 Above means that this adjustment for a product under Standard cost calculation has a value in the Product Asset account that is not true. Above posting should be something like: XXXXX Product Price Differences Debit 20.00 62400 Transportes Credit 20.00 If you introduce now a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25. If the users does not navigate to the Costing tab of this product they will not realise that there is a difference. |
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| Revision | 2015-04-28 17:50 by VictorVillar | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only adjustment for Goods Receipt document (not for the Goods shipment) and also there is no recalculation of the Cost register. It is OK. It means that the stock is 0 and the valuation is 20 but as you can see in the journal entry of the Landed Cost: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 It means that is affecting the Product Asset account but it is not true at this point of time (it would be either differences or variances) If you introduce a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25. If the users does not navigate to the Costing tab of this product they will not realise that there is a difference. |
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| Revision | 2015-04-28 17:42 by VictorVillar | ||
| Steps To Reproduce | You should work with a Standard Cost Algorithm As group Admin role, Go to Product window: create a new one Name: test Add a purchase Price list: Tarifa bebidas unit/list price: 5 Add a Cost register: Start date: 01/01/2012 Ending date: 31/12/9999 Cost: 5 Warehouse: blank manual: Y permanent: Y Go to Purchase Order: Create a new one for this product: qty: 1 Complete it. Go to Goods receipt window, Create the lines from the Purchase Order created before. Storage Bin: RN- 2-0-0 Complete it. Go to Goods Shipment window, Create a new one selecting the product: Test qty:1 Process it. Go to Product window: create a new one Type: service name: transport Accounting tab: Asset Account : 62400 Transportes Product Expense : 62400 Transportes Go to Landed Cost Type document: select the Distribution by Amount algorithm select the product: Transport Create a landed cost document --> Cost 20 assigned to the Goods Receipt created before. Process it Launch the Costing Background process and realise that the transactions have been calculated. Realise that there is only adjustment for Goods Receipt document (not for the Goods shipment) and also there is no recalculation of the Cost register. It is OK. It means that the stock is 0 and the valuation is 20 but as you can see in the journal entry of the Landed Cost: 35000 Productos terminados A Debit 20.00 62400 Transportes Credit 20.00 It means that is affecting the Product Asset account but it is not true at this point of time (it would be either differences or varation) If you introduce a new goods receipt (qty: 1 => transaction cost 5) and you launch the valued stock report, you will see qty:1 and valuation 25 => 'Average Cost': 25. If the users does not navigate to the Costing tab of this product they will not realise that there is a difference. |
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