c2c-oerpscenario team mailing list archive

["hbto \(Netquatro\)" <humbertoarocha@xxxxxxxxx>]

Hello Fabien,
Returning products back to supplier _does_ change average cost.

I Disagree with you in this point.

> The following operations should not change the average cost:
>  - delivering a customer  (with products that come from a particular
> supplier or not)
>  - scrapping defects products (that come from a particular supplier or not)
>  - returning the products back to a supplier (fortunately, otherwise you
> have to reconcile each product you send to a
>    supplier with the right reception order.) (*)
>
> (*) Returning products back to supplier _does_ change average cost.

Let's say you have:
1) 10 Products A @ AVG €100,00 (Initial Inventory) that yields €1.000,00
2) Buy 5 Products A @ €150,00 yielding €750,00 which causes AVG to change to
AVG = (1.000,00+750,00)/(10+5)
AVG = 116,67 yields a total inventory of €1.750,00 = 15*116,67
3) Sell 3 Products A @ AVG €116.67, causing a reduction in the inventory
1750-3*116,67 = 1.400,00 keeping 12 Products A @ AVG= 116,67
4) Return to supplier 2 Products A @ same purchase price €150, which causes
inventory to reduce to 1.400,00 - 2*150,00 = 1.100,00.
That let us with an Inventory Valued in 1.100,00 for 10 Products A.
And the only way that we can "guarantee that accounting values =
stock_accouting values (basic assumption for any audit)", as pointed by
Chricar, is that those 10 remaining Products A be recomputed theirs average
cost to 1.100,00/10 = 110,00 = AVG.

When returning products to suppliers we _must_ do them at same purchase
price, otherwise, if returning at average price, we could be harnessing a
cost that is not ours, whenever AVG > purchase price, or earning a profit
that either is not ours, whenever AVG < purchase price.

Sorry for posting this too late, but better late than never.

Regards.

Hbto

-- 
[5.0] return products to supplier does not update price average
https://bugs.launchpad.net/bugs/610738
You received this bug notification because you are a member of C2C
OERPScenario, which is subscribed to the OpenERP Project Group.

Status in OpenObject Addons Modules: Confirmed

Bug description:

When returning products to a supplier, the average standard price should be updated using the price of the packing list which is returned.

For example :
1- We have 10 products with average price = 100
2- We receive 5 products with price = 80 --> average price is calculated as (10*100+5*80)/(10+5) = 93,33
3- We return 3 products from the last packing list (the one where products cost 80)
The new average price should be 
(93,33*15 - 3*80)/(15-3)=96,67

If the return is made directly from the stock and does not concern any incoming packing list, we do not update the average price.