Problem: I've entered invoiced received in October, 25th for an 1 Item (price - 100 AED) . Then I've entered Sales Invoice on October, 26th (the items cost is deducted as 100 AED). Then on November, 1st I receive the bill from the transport company(transport charges - 50 AED). This cost from the will be a landed cost to the concerned item and on the item balance I'll have 50 AED without qty.
Solution: If the case when invoice for additional expense is received after the sale has happened occurs during the same month the cost will be allocated according during the month end closing when you enable cost calculation option:
But when it comes to the end/beginning of the month , the additional expenses will not be allocated automatically, and the cost will be remaining on the item's balance:
There are two ways to clear the case:
- the additional cost is included in the Average Cost Price of the item and will be deducted accordingly from the next sales
- the manual correction using Inventory Write off documents (the case is used when you do not plan to purchase this item anymore)
Inventory Write Off document is entered using Amount only option , in Correspondence select Cost Of Sales Expense Account :
In Inventory Tab Put the concerned item and Additional expense amount:
Inventory Write Off document will create the following transaction (in Dr side there will account specified in Correspondence field):
And the balance of inventory has been adjusted:
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