Purchase Order Stock Item Cost Change Report for Price Decrease
Our inventory method is FIFO for Cost and Level Margin for Sales. We have uncovered the following in Denali:
- Inventory cost is correctly calculated based on FIFO, however, this does NOT apply when Denali calculates the Sales Price for items.
For example -- If an item is currently in inventory at a cost of $5.00, and more are purchased at a price of $4.00 -- the Sale price is now calculated off the last cost of $4.00. This means when you sell the $5.00 item in inventory you will sell it at a LOSS! Since the system does NOT mechanically calculate the Sales cost based on FIFO, a MANUAL work around needs to be implemented.
Currently when items are received in PO's a "PO Stock Item Cost Increase Report" is generated. We need a "PO Stock Item Cost DECREASE Report" so we can identify items coming into inventory that cost LESS than they previously did so we can manually update the Last Cost in inventory so the Selling Price is calculated at a profit instead of a loss.
Thank you for bringing this to our attention. We have sent this to our development team under PBI #44642.