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Re: Return products and average cost

by
Eva Pinter
- 01/11/2015 09:38:05
Hi Nhomar,

The main point about Auditing is consistency. If you consistently use the same method and you can explain the method, then it is widely accepted, although I cannot speak for your country ;-)

In SAP, you may set up the system to change the MAP for each return and then the MAP suddenly becomes negative and the system does not allow the posting, what causes a lot of other issues. So, I guess, the problem is not THAT simple. This is why most companies, including top 500 companies, use MAP with a posting of a price difference with no effect to the MAP. 

The other way to handle this is to have a two step goods receipts where the stock is first entered in the quality control stock (that you still consider as your vendor’s stock) with no effect to the stock value and to the stock quantity and so no effect to the MAP. Then, once the goods are checked, you move them into your own valuated stock.

This is the process I have set-up in SAP with companies like high end watch manufacturers that have a high quantity of returns due to very high quality requirements for goods receipts. 

Such a solution may be feasible in Odoo and together with the automatic price difference posting, we should be able to have quite a good solution.

I’ve asked my chartered accountant to provide his view on this. I will comment on this with his answer.

I hope this helps

Good luck!
---
Eva P.

Get free Odoo training in our youtube channel http://www.youtube.com/user/ybofr





On 11 Jan 2015, at 08:17, Nhomar Hernández <nhomar@gmail.com> wrote:

Don't take me wrong

I tried already all options available (I have databases with 6 years of data which is not a little)

The problem is that the considerations of process are not auditables.... That's the bug or leak of functionality.

This elements are too frequently mixed with several use cases then what I need is NOT that odoo considered all of them because it is virtually impossible.

What we need and is where I want to point out is that "by design" we need a data structure and a set of view/reports which must be used as audit elements....

Today all de data structure is simply unlinked; not auditable and too propense to errors.

And I am talking about returns! When you put inside MRP; interim convention; edition on prpducts; objectivally no there are a simple method which you run and say.... " this list must to be audited; this other is perfect; this other ones has this and this and this leak of data.".

If somebody here say that a simple correction will help I wrong I can show a lot of cases where simply data is inconsistent
... That' a fact.

Regards and BTW..... 2 OPTIONS has odoo here... 1 - continue designing business elements 1 way.... Or.. 2 - at least deliver correct audit elements and normalized data to deliver correctly numbers to 1 user company or 1000 users company... It is perfectly the same... I can show tools of 1000bucks that do that with 3 clicks... Why not odoo?.

Do you accept the challenge?

On Jan 10, 2015 7:52 PM, "Eva Pinter" <epinter@openit.ch> wrote:

Hi,


The solution chosen by Odoo is not to be considered as a bug. Unless you are working in an environment where the returns are very frequent and the price differences between two purchases are very high, this is perfectly acceptable. What could be better done in Odoo is that when the refund is posted, the difference between the purchase price and the average price should be posted in a price difference account. Otherwise, I may be gaining or loosing money, only by returning goods to my suppliers.

FIFO or LIFO
1. Purchase 2*10 & 1*20, Stock value = 40, 3 units
2. Sell, COGS = 10, Stock value = 30, 2 units
3. Return at 20, Stock value = 10, 1 unit

CORRECTION OF THE UNIT PRICE ONLY
1. Purchase 2*10 & 1*20, Stock value = 40, 3 units
2. Sell, COGS = 13.3, Stock value = 26.6, 2 units
3. Return at 20, Stock value = 6.6, 1 unit   <= I just lost 3.4, by returning the goods… ;-)

NO CORRECTION OF THE UNIT PRICE
1. Purchase 2*10 & 1*20, Stock value = 40, 3 units
2. Sell, COGS = 13.3, Stock value = 26.6, 2 units
3. Return at 20, Stock value = 13.3, 1 unit  <= I just gained 6.6, by returning the goods…..;-)

Hope this helps

Good luck!
---
Eva P.

Get free Odoo training in our youtube channel http://www.youtube.com/user/ybofr





On 9 Jan 2015, at 15:57, Martin Trigaux <mat@odoo.com> wrote:

Hello,

We would like to statue on an (old) bug and would appreciate advices
from people with experience in stock accounting.

The bug lp:610738[1] "return products to supplier does not update price
average" concerns the following scenario:
- product configured in average price and real time
- buy 1 piece at 10€ (average price = 10€)
- buy 1 piece at 20€ (average price = 15€)
- return the last purchase to the supplier

Current situation:
- the average price is unchanged
- the stock input account and stock valuation is decreased of 15€

Suggested change:
- the average price is changed to 10€
- the stock input account and stock valuation is decreased of 20€

Should the return be made at the purchased price or at the current
average price.

Our position has been that both behaviour are acceptable and dependant
of the management of the company.
One of the last comment[2] suggested that it is indeed the case (with
preference for the suggestion behaviour) while most of the previous
suggested the current behaviour is incorrect.

Some time has passed, modules have evolved but the bug is still opened.
To close this debate once and for all, what is the opinion of experts on
this?
Accounting references would of course be of great help here.

Thank you in advance,

Martin

[1] https://bugs.launchpad.net/bugs/610738
[2] https://bugs.launchpad.net/openobject-addons/+bug/610738/comments/48

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