Inventory costing for purchase return notes

This topic describes the impact on receipt, issue and item costs when a Purchase Return Note is created and processed. The inventory costing principles related to Purchase Return Notes is the same as that used elsewhere in the system.

When processing a Purchase Return Note, a movement order is created with an issue Movement Type. This is based on the Movement Order Type defined in the Purchase Type for Purchase Return Notes. Each movement order line creates an issue record. The normal inventory costing principles related to movement order of an issue type are applied.

Inventory cost transfers only occur when the issue has been actualised. That is, confirmed. At that time, the latest cost, the standard cost, the weighted average cost, the defined average cost and any other user defined costs are copied from the costs on the item record to the issue record. The latest cost is copied from the receipt record that the issue is allocated to, to the issue record.

Value label amounts on the Purchase Return Note are transferred to the movement order value labels. For issues, no value labels are used for costing. That is, the latest and weighted average costs for the item are not recalculated and amended.

The costs can be broken down into Cost Types. For each combination of currency and cost type, all standard, defined average, latest, weighted average and user defined costs are recorded.