Cost of Sales Adjustment on Bill Credit

Written by
Milkie Fernandez
Published on
October 31, 2023 at 6:28:51 AM PDT October 31, 2023 at 6:28:51 AM PDTst, October 31, 2023 at 6:28:51 AM PDT

Scenario

Cost of Sales Adjustmentis not always equal to the amount ofItemsbeing returned in theBill Credit.

Solution

Cost of Sales Adjustmenton aBill Creditcan be computed using the formula below:

(Average Costprior to theBill Credittransaction XBill Credit Quantity) -Bill Credit Amount

AnInventory Valuation Reportcan be generated to easily compute for theAverage Costof theItembefore creating theBill Credit. Just customize the report as follows:

  1. Under theEdit Columntab, click on theQty.column and mark theAdd Running Balance Columncheckbox

  2. UnderFilterstab, set:

-Locationand Item in question
-Date= before and including (as of date)

After generating the report, divide the sum ofInv. Valuecolumn over the sum ofQty.column. Consider only the transactions created before theBill Credit.