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Evo-ERP and DBA Classic >> Manufacturing >> Incorrect PO Price
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Message started by alphadave on 01/31/05 at 14:50:34

Title: Incorrect PO Price
Post by alphadave on 01/31/05 at 14:50:34

We incorrectly used a cost for and item on a PO that was not caught.
We are NOT using FIFO/LIFO, and we do have manufacturing and accounting connected so transactions flow to the GL.
The problem was not caught until the COGS from the Income Statement was found out of wack. To resolve the situation we attempted to fix the problem by performing the following.
1. We opened up all of the Work Orders that used the part in question and backed out the material issuing transactions for that 1 item with negative transactions. We also backed out the finished product with negative transactions.
2. We ran IN-K and entered the correct cost for the item.
3. We recalculated the book value.
4. We issued that material back to the work orders.
5. We closed the work orders. And entered the finished inventory.
6. As an experiment, we backed out one of the original invoices and reinvoicedin an attempt to get the COGS back to "normal". That didn't seem to take care of the problem competely. Do we also need to back out the original receipt of the purchase order and redo?

Thanks

Dave

Title: Re: Incorrect PO Price
Post by aricon on 01/31/05 at 15:18:16

Well, you COULD undo the PO, that would correct the remainder of the "paper trail".

However, I suspect the problem is that other transactions occured with this part(s) in the interim outside of the transactions you "fixed". Ans as you are running in average costing, what got posted to the G/L was the average AT THAT MOMENT. You would have to undo ALL the transactions and re-do them correctly in order for the G/L amount to be correct.

I would suggest it would be MUCH easier to do a manual GJ transaction to correct the misstated amount in your COGS G/L account.