A/R Credit Note uses incorrect price to affect Last Purchase Price and Moving Average

[Johan_H]

Hi,

Currently in our system, when posting an A/R Credit Note, item stock is returned with a value according to the sales price instead of according to the cost price at the moment of sales.

Example:

Item	Purchase Price	Purchase Quantity	Total	Moving Average
Doohickey	1.00	100	100	1.00
Doohickey	1.50	100	150	1.25
Doohickey	2.00	100	200	1.50

Last Purchase Price 2.00, total stock value 450

When I sell 100 Doohickeys, I know it costs me 1.50/pcs. I put 100% margin on it, and sell it for 3.00/pcs. My total margin is 150 and the value of my left over stock is 300.

When my customer returns the 100 Doohickeys, I pay back 150, and my stock value increases by 150

Item	CN price	Returned Quantity	Total	Moving Average
Doohickey			previous	1.50
Doohickey	3.00	100	300	2.00

Now Last Purchase Price is 3.00 and total stock value is 600.

For all intents and purposes both the Last Purchase Price and Moving Average are incorrect.

My question is, is my reasoning flawed or is this system behavior wrong or is this a matter of a setting somewhere?

Regards,

Johan

EDIT: this system behavior only happens when the Credit Note is not based on a source transaction.

[prudhvi_ravipati]

Hi @Johan_H ,

When the A/R Credit Memo is not based on Source Document.

Then check following setting "Document Setting - Per Document Tab - A/R Credit Memo" whether "Allow Setting Item Cost When Document is Not Based" is marked or not.

If it Marked then check what is the return cost price list defined over there.

In Your stand alone A/R Credit Memo, this option will be hidden in form Setting, If we uncheck this option then it will post based on at that moment Item Cost for the product.

please check and update. If Solution is correct Mark the reply as "Answer".

Thanks,
@prudhvi_ravipati