Wrong margin calculation in SO

[Kevin McMenamin]

V6.0.3

Create a SO for a product with procurement method = on order (SP = 21.48, qty = 10, disc = 40%). In SO line record, margin = 59.58% and purchase_price is null.
Open the PQ record and change the purchase price to $18. Convert to PO.
Receipt stock & process AP invoice
Despatch goods and confirm sales invoice.

On SO line, margin now -14.22 and purchase_price still null.

1. Margin calculation wrong - should be -39.66
2. purchase_price not updated.

[Kevin McMenamin (kevin-mcmenamin)]

same issue exists for margin calculation of ex-stock where there is a backorder and new stock arrives at a different cost

[Jignesh Rathod(OpenERP) (jir-openerp)]

Hello Kevin ,

I have checked this issue but I don't agree with you
the product margin calculated based on Cost price of product
not from the purchase order's price.
so the formula is

 product margin = (( sale price - cost price ) * sale order qty ))

Now let me explain about your scenario ,
when you have changed the PO's price the product cost will update, if
you have set "Average price" on product but your Sale Order is already confirmed so
it takes a products old cost price.
That's why it not consider a updated cost price.

So this is not a bug and I am closing this issue,

Hope this will helps you.

Correct me if I am wrong.

Thanks for understanding.

[Kevin McMenamin (kevin-mcmenamin)]

In my opinion you are wrong - under the current method the margin in the sales module will not be the same as in the GL. For both instances when the goods are received the applicable sales lines should be updated.