0029728: Purchase price differences need to be post to a PPV account for products valued at "Standard" cost

Openbravo Issue Tracking System - Openbravo ERP

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Project

Category

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Date Submitted

Last Update

0029728

Openbravo ERP

04. Warehouse management

public

2015-04-29 09:15

2015-08-20 23:16

Reporter

psanjuan

Assigned To

aferraz

Priority

urgent

Severity

major

Reproducibility

always

Status

closed

Resolution

fixed

Platform

OS Version

Ubuntu 8.04.1

Product Version

Target Version

Fixed in Version

Merge Request Status

Review Assigned To

vmromanos

OBNetwork customer

Web browser

Modules

Core

Support ticket

Regression level

Regression date

Regression introduced in release

Regression introduced by commit

Triggers an Emergency Pack

Summary

0029728: Purchase price differences need to be post to a PPV account for products valued at "Standard" cost

Description

Purchase price differences need to be post to a PPV account for products valued at "Standard" cost

Steps To Reproduce

Work within an Organization that has an "Standard" Costing rule.

Create a product named "Product Price Correction Standard".
Add a purchase price list and enter a purchase price of 100.00 Unit Price=List Price.
Go to Costing tab and enter a new record.
Starting date: 01/01/2015
ending date 31/12/9999
Cost type: Standard
Cost = 100
Manual = Yes

Create a purchase order for this product of 5 units. Book the order.

Go to Goods Receipt window and create a new receipt for the previous order.
Complete it. Run Costing Background. Post it.

Posting looks like:

500 (3500) Product Asset - Debit
500 (4009) Non-Invoiced Receipts - Credit

Go to Goods Shipment window and ship 1 unit of this product. Complete it. Run Costing Background. Post it.

Posting looks like:
100 (9990) Cost of Goods Sold - Debit
100 (3500) Product Asset - Credit

Go to product window, transaction tab and realize that Goods Receipt transaction cost is 500.00. Goods Shipment transaction cost is 100.00.
This is correct.

Go to purchase invoice window and create a new invoice for a vendor by selecting either the order or the receipt previously created.

Navigate to Lines tab and change the price to 150.00. Complete and post the invoice.

Run Costing Background. Run Price Correction.

Navigate to "Matched Invoice" window and realize that a transaction related to this product is created. Post it.

Matched Invoice posting looks like:

500.00 (4090) Non-Invoiced Receipts - Debit
250.00 (9904) Invoice Price Variance - Debit
750.00 (6000) Product Expense - Credit

A purchase price difference cost adjustment is created for the goods receipt of 25 (5 units x 5€/unit). This purchase price difference now is handle as a cost adjustment which can be posted affecting inventory value/accounting of the product which it is not correct, as the "Standard Cost" of the product remains as 100.00 which is correct.

Purchase Price difference adjustment current posting looks like:

250.00 (35000) Product Asset - Debit
205.00 (99904) Invoice Price Difference - Credit.

This is not correct, product asset account should not be used.

Value Stock Report is also not correct because it shows below info:
Product : Product Price Correction Standard
Quantity: 4
Average Cost : 106.25 (525-100/4) - this is not correct. It should be 100.00
Valuation: 425 (106.25*4) - this is not correct. It should be 400.00
See issue 29731

Proposed Solution

In the case of products valued at "Standard" cost:

(1) Matched Invoice posting can also point to the "Invoice Price Variance" (please check as it seems there is another account do not shown in the UI, named "Product Price Variance" or something similar), therefore Matched Invoice posting would look like shown below:

500.00 (4090) Non-Invoiced Receipts - Debit
250.00 (XXXX) Invoice Price Variance - Debit
750.00 (6000) Product Expense - Credit

(2) Purchase price differences must not trigger any cost adjustment, therefore the amount of the Invoice Price Variance account is not moved to the product asset account. Besides that both the "Total Cost" and the "Unit Cost" of the transaction remains the same as the "Trx Original Cost" (Standard Cost * nº units).

Additional Information

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Relationships

related to	defect	0029723		closed	aferraz	Landed Cost differences must not trigger a cost adjustment and need to be post to a "LCV" for products valued at Standard Cost.
blocks	defect	0029729		closed	aferraz	Differences between actual cost and standard cost (variances) should not trigger Cost Adjustments.

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2015-04-29 09:15