Weighted Average Cost Supplier Returns

jrogerson

Member
Vendor Returns
When doing a vendor return, we enter a negative PO (OC document type). We enter the amount that we expect to receive from our supplier in a vendor return. (This amount appears on the document that we send to the vendor for the return. Our vendor needs to see only the amount that he pays to us per item.) Inventory is relieved of that expected amount and the weighted average cost recalculates inventory removing the expected amount and averaging the difference among the remaining items.
We are using weighted average cost type 02 in our company.
This is a critical issue because of the volume involved in annual returns in our business. There is a significant impact on the weighted average cost of the remaining inventory items when a vendor return is performed. The question is as follows: Is there a way to perform a negative PO where the weighted average cost is not recalculated and can we direct the difference to a restocking account?
We are operating on AS400, Citrix server, Service pack 14.2. Also we are not live yet but will be soon.

Thank you,

Jim Rogerson
 

mcb

Active Member
If you want to avoid a program to update the average cost, you may put an N in the UDC 40/AV for the program number. The problem is that cannot be defined by document type. This UDC only indicates if a program updates the average cost with the cost of the transaction. Probably not a solution.

I thought of two workarouds.

If you not update your average cost online, the system writes to a specific table (don´t remember the name now) and then you run the update program. There may be a way to eliminate these negative records from the table by running a custom program.

Another workaround could be to copy the receipts program and name it something else (P554312) and define this field as N in the above UDC and process only returns using this program. I have not tested this, but it may be worth trying it.

Hope this helps.
 

Craig_Potter

Reputable Poster
Jim,

You may need to use a Non-Stock Line Type on these Purchase Orders and use a
different process for relieving the Inventory. (i.e You could enter a 2nd
line on the PO to relieve inventory at current average that doesn't print on
the Suppliers Document using different Status Flows by Line Type?)

Regards,

Craig Potter
 
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