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Re: Return products and average cost

by
Kevin.McMenamin
- 01/11/2015 15:26:26
Working through the options and knowing what is available it may be too difficult to handle the negative stock situation correctly where there is a purchase return.

However, the current logic is not acceptable either.

As Eva points out, if the return move is being done at average cost then the credit note also needs to be done at average cost so that when the user amends the price (to be what is actually being credited by the supplier) the difference gets written off.

Also, the return move and the credit note line both need to go to the stock input account so they match off correctly.

Regards

Kevin McMenamin
ERP Capability Manager

Mobile  +64 22 651 3753
Phone  +64 9 977 5805
Email   kevin.mcmenamin@solnet.co.nz

Solnet Solutions Limited
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From:        Eva Pinter <epinter@openit.ch>
To:        "Community" <community@mail.odoo.com>,
Date:        11/01/2015 02:53 p.m.
Subject:        Re: Return products and average cost





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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