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Cost Difference

Former Member
0 Kudos

Hi Friends,

Please help me to solve this scenario.

This issue is regarding Replace order difference due to some damage .

When Return Goods:

Dr: inventory 100

Cr: Cost of goods 100

When we Re-issue the Goods

Dr: Cost of goods 90

Cr: Inventory 90

The cost is difference of 10, because of the moving average price

Issue is “This difference in COGS can not allowed by Auditor(Legal requirement) it should be 100 again ”

How would I handle this price difference

Please help me to solve this difference

Regards,

George

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi George,

COGS will be 100 if the valuation type is standard. If it is Moving average price system will post as per the MAP. But I am little confused on valuating the goods on MAP. I feel it is better to valuate finished/semifinished goods on standard price than MAP.

Regards

Santosh Hegde