| Description |
Right now if cost is changed in the vouher the difference is booked for Inventory and Auto Variance accounts. Instead of Auto Variance,
1. the difference has to be credited to Payable Account and debited to inventory if the stock is not sold or consumed
GL entries should be the following:
Receipt = $50
Receipt GL Entries:
$50Dr Inventory
$50Cr AP Clearing
Voucher = $60 (cost changed and voucher increased by $10)
Voucher GL Entries:
$10 Dr Inventory,
$50 Dr AP Clearing,
$60 Cr Payable
2. The difference has to be credited to payable and debited to cogs account of the item if the stock is sold
$10 Dr COGS
$50 Dr AP Clearing,
$60 Cr Payable
3. The difference has to be credited to payable and debited to inventory account of the both item if the stock is consumed for production
$10 Dr Inventory of item B (produced item)
$50 Dr AP Clearing,
$60 Cr Payable
Do not generate GL Entries and inventory adjustment entries for all Lot transactions like move, split and merge that happened before the cost change.
Lot merge can result in an average cost if the lots merged have different costs.
Use 'Inventory Adjustment' account category to book cost adjustments on Adjustment transactions. Do not use Auto Variance account.
[http://inet.irelyserver.com/display/~rufil.cabangal/Cost+Adjustment+-+Manufacturing+-+No+Invoice+yet]
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