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Re: Return products and average cost

by
Eric Caudal
- 01/09/2015 20:55:17
Your return should be valued at average price by default (usually this is the information you have on hand at the execution) and afterwards value is adjusted by the accountant.

2015-01-10 5:48 GMT+08:00 Ana Juaristi <ajuaristio@gmail.com>:

Nhomar.. May I see something wrong in your example there?
El 09/01/2015 22:22, "Nhomar Hernández" <nhomar@gmail.com> escribió:
>
> I Will repeat myself in order to complement explicitally where is the wrong point.
>
>
> Logistic Perspective                        |           Accounting Perspective
>
> A - Have 1 product at 10                     |  - Valuation 10
> B - Buy 1 product at 20 - ave: 15        |  - Valuation 30
> C - Deliver product at 15 - ave: 15      |  - COGS 15 - Valuation 15
> D - Return 1 product at 10 - ave: 15   |  - Valuation 5, COGS stay in 15
> -----  This is the extra postmortem step.
> E - Fix the ave to 10                           | - Fix account move at credit 5 on valuation debit 5 at COGS 10
>
> In D with no correction.

If you deliver one unit and  you return the other one your valuation is 0 not 5 since you don't have stock anymore
On the other side how could you return at 10 if your av is 15?
could you explain a little bit?

>
> Your profit is less than the correct one.
>
> Let's say we are talking of millions of dollars, (a normal yearly company can invoice easily that with high returning process in different set of products.)
>
> 15 Millions go to cost.
> Let's say we sold at 20 Millions.
>
> 5 Millions of revenue.
>
> Let's say your Income tax is 34%
>
> 1,700,000.00 Of Tax.
>
> With actual Approach you are facing this issue.
>
> Real COGS should be.
>
> 10 Millions (because you sold at 20 remember)
>
> 3,400,000.00 of Tax
>
> Result... A huge problem with Goverment.
>
> And for investors and directive the accountant will be a huge problem (because it can be taken as a intentional reduction of profit).
>
> Yes, 100% of our accountant realize of this issue since v5, we solved them in several ways, but it should be great inb our Enterprises cover such huge kind of bugs.
>
>
> 2015-01-09 15:02 GMT-06:00 Ana Juaristi <ajuaristio@gmail.com>:
>>
>> From our side ++1 Fabien's and so Odoo's aproach. Outgoing do never change product cost
>>
>> But now after reading other aproaches I doubt about returns. I see is different returning than outgoing.
>> One incoming picking should have incoming invoice, sameway returnig picking should have refund invoice so question is... Should refund invoices or return pickings recalculate someway product medium cost?
>> If yes... How? I don't see easy to do to obtain exact value.
>> I would like to know how other systems dial with this issue. I think it's more functional/conceptual issue to be solved more than technical one
>> My 2 cents
>>
>> El 09/01/2015 19:19, "Nhomar Hernández" <nhomar@gmail.com> escribió:
>>>
>>>
>>> 2015-01-09 11:22 GMT-06:00 Christophe Hanon <chanon@adins.com>:
>>>>
>>>>
>>>> Other issues are also related to this, for example the current system works by processing deliveries sequentially, but sometimes due to a wrong encoding order, the price is again false.
>>>>
>>>> Actually I got it 'right' only one way, by having a recompute routine so corrections can be applied safely.
>>>
>>>
>>> THIS is a third scenario that Odoo has never understand is needed.
>>>
>>> We need is a recompute process which linking three components bring out thorught several ways audit process:
>>>
>>> Proposed Level:
>>> - Purchase Order (theoretical amount which is used to load the first valuation)
>>>
>>> Real Level:
>>>
>>> - Account Moves related.
>>> - Stock Moves.
>>> - Invoices.
>>>
>>> Then with this 3 components
>>>
>>>
>>> Post Mortem run a routine which analyse your inventories and make 2 options:
>>>
>>> 1.- Report with inconcistencies impossibles to solve automatically (purchases after deliveries with negative temporal inventories).
>>> 2.- Correction on Atock Move, Quants and Account Move related which can be done automatically.
>>>
>>> With everything related to pull and push and procurements now, this process is bringing A LOT of use cases which are not sequencials and the postmortem routine is becoming mandatory.
>>>
>>> But, again, Odoo must have the willing to design the process auditable and auto-fixable,
>>>
>>> About this specific case.
>>>
>>> Both are wrong.
>>>
>>> What Fabien is saying is worng is because it is "incomplete"
>>>
>>>
>>> Logistic Perspective                        |           Accounting Perspective
>>>
>>> - Have 1 product at 10                     |  - Valuation 10
>>> - Buy 1 product at 20 - ave: 15        |  - Valuation 30
>>> - Deliver product at 15 - ave: 15      |  - COGS 15 - Valuation 15
>>> - Return 1 product at 10 - ave: 15   |  - Valuation 5, COGS stay in 15
>>> -----  This is the extra postmortem step.
>>> - Fix the ave to 10                           | - Fix account move at credit 5 on valuation debit 5 at COGS 5
>>>
>>>
>>> We are facing now this issue in a company with 10000 products, you can imagine the difficult process to audit, but then IMHO stock move -  quants - sales orderds - purchase orders - invoices MUST be perfectly relationables and normalized models to be able to audit everything in an automatic way (which is not the case totalñly now they has some leaks of normalizations).
>>>
>>> I hope it helps!
>>>
>>> Regards.
>>> --
>>> --------------------
>>> Saludos Cordiales
>>>  
>>> Nhomar Hernandez
>>> about.me/nhomar
>>>  
>>>
>>> _______________________________________________
>>>
>>> Mailing-List: https://www.odoo.com/groups/community-59
>>> Post to: mailto:community@mail.odoo.com
>>> Unsubscribe: https://www.odoo.com/groups?unsubscribe
>>
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>
>
>
>
> --
> --------------------
> Saludos Cordiales
>  
> Nhomar Hernandez
> about.me/nhomar
>  
>
> _______________________________________________
>
> Mailing-List: https://www.odoo.com/groups/community-59
> Post to: mailto:community@mail.odoo.com
> Unsubscribe: https://www.odoo.com/groups?unsubscribe

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--
Eric CAUDAL
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