Incorrect Cost (FIFO) When Returning

[Felipe_Lima]

Hi Community,

After posting an A/P Credit Memo, a user noticed that the cost attributed to the item in the Journal Entry was incorrect.

As the current cost at that time was 0.02720 (and still is), why was the returning cost posted as 0.03000? 

This item was stocked under a single FIFO layer, costed at the same 0.02720, so I see no reason for attributing a different value.

If I simulate the very same transaction now, I get the same result. See first the actual cost, and then the amount being posted as cost on the second.

However, if I increase the quantity to 100, the cost gets a correct attribution: 100 x 0.02720 = 2.72

Would be this a rounding matter (issue)? Any thoughts would be greatly appreciated!

Best Regards,
Felipe

[mgregur · Accepted solution]

Hi,

from your screenshots I would say that this is due to rounding. Under Administration => System Initialisation => General Settings, tab Display you can check this, but it seems that Prices are set to 5 decimals, and Amounts to 2 decimals. This means that any price can be shown with 5 decimals, but final calculation of Total Amount needs to be rounded to 2 decimals and is saved as such.

BR,

Matija

[Felipe_Lima · Accepted solution]

Hi Matija. You are correct. The decimals difference caused this rounding issue. I thought it could be something else, but after testing same scenario using same decimals for amount and price, the calculation was correct. Thank you!