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Si (and others),
I'm wondering if you can advise on the following...
I raise a purchase order for an item. Because of the nature of my
industry, the normal way to express the cost is "Recommended Retail
Price less a negotiated trade discount". For example, if the product
costs $100 and my discount with that supplier is 40%, it'll cost me $60.
I handle this by setting up a purchase agreement with the supplier using
a promotion. The supplier_product record for the product will have a
last_price of $100 (the RRP), and, of course, the promotion is for 40%.
I place the order, receive it into inventory and then check the GL.
Inventory GL Account: $100
Accounts Payable: $60
Purchase Order Adjustments: $40
In this situation, shouldn't the Inventory account be credited with the
adjusted value, $60, 'cause that's what I actually paid for it? Have I
screwed something up on my config?
It would be extremely difficult for me to change the supplier_product
pricing data to a nett figure because (a) the RRP pricing changes on
occasion and I get the pricing info from an industry database, (b) my
trade discount changes over time as I negotiate better rates with my
suppliers, and (c) I deal with thousands of products (books).
At the end of the day, I would expect the Inventory report to tell me
the cost of inventory, not the retail value of it.
Advice appreciated, Iain
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