Contributors mailing list archives

Browse archives


Re: Simplified standard landed costs

MoaHub, Graeme Gellatly
- 11/03/2022 00:39:47
This is the identical problem to suppler rebates. Essentially the IAS2 requirement to account for full cost of inventories. I wouldn't think of it as a landed costs issue, but the more generic the purchase order price is different to the inventory valuation.

You can actually fudge this by overriding the stock move price unit in Anglo-Saxon and then just using the variance account as a kind of offset.

I did used to have an entire v7 module that handled all of these stock price adjustments on the way in. It was actually really complicated to work in with anglo saxon at the time. At v12 I tried to generalise it such that it was possible for a user to configure, as actually under Revenue accounting you have a similar issue, but at v14 it is still a work in progress.

At its guts you need to know 3 prices to make the following to happen. (Brackets are examples, there are other things to consider)

  • PO at correct price to supplier. (i.e. Purchase Price).
  • Stock receipt at Inventory price (i.e. Purchase price less expected discounts and rebates, plus costs of bring goods to current location and condition)
  • Invoice price at correct invoiced price (sometimes this is Purchase Price, sometimes it is Purchase Price less some discounts like prompt payment included on invoice)
That is the easy part explained. The trick then is in the accounting entries. As you basically need to make sure amounts are accrued to variance accounts and then offset as invoices come in.

As I say you can kind of fudge it good enough just using the standard AS price variance account if you have good accountants who understand why they are porting there, but it needs something a bit more proper. It is kind of on my list for attention in next 3-6 months, but the part you are describing is just a small subset of the inventory cost problem.

On Thu, 10 Mar 2022, 9:07 am Daniel Reis, <> wrote:
Thank you Pedro,

IIUC that adds a line to the PO, that will become an expense entry when you validate the invoice.

It doesn’t increase the product unit cost directly, correct?


No dia 09/03/2022, às 19:15, Pedro M. Baeza (Tecnativa) <> escreveu:

I think you can use our module that simplifies the flow at the same time that reuses existing features.


Post to:

Post to: