Comment 48 for bug 610738

Done with v7.0.

I am sorry if this was already submitted somewhere else, we are new to OpenERP.

Here is a way I think to see that the calculation of the average cost/way to handle the supplier return has a problem:

Start with a fresh database. Set it up such that the accounting consequences for the delivery are calculated. Setup one item with income account, expense account, stock input account, stock output account = COGS, and stock valuation account.

Purchase 10 items at $10, validate all (purchase order, incoming shipment, invoice)

Purchase 10 items at $20, validate al.

Average price at this point: $15

Stock valuation: $300 ($100+$200)

So far perfect.

Go back to the first incoming shipment and use “Return Product”, validate the return. (note that the return does not use the average cost to calculate the accounting consequence, but the cost in the original purchase = $100).

Stock Valuation: $200 ($300-$100)
Average cost: still $15.

Enter a sale for the product: 10 items, validate sales order and delivery. Accounting consequences are calculated with the average cost of $15.

Stock Valuation: $50. ($200-$150)
Average cost: $15.

But there is no stock left, everything was either sold or returned to supplier. Yet the stock valuation account shows $50. I don’t think anybody can argue that it is ok to have no stock and stock valuation non zero.

To me there are two choices:

1. Recalculate the average cost on return to supplier(as many are advocating here)
Then after the return: stock valuation: $200, average cost = $20, and the sale would move $200 out of stock valuation -> 0.

2. When calculating the accounting consequences of the return, use the average cost = $150.
Then after the return: stock valuation: $150., average cost = $15, and the sale would move $150 out of stock valuation ->0.

Most will want 1 but 2 would solve the problem of following the rules of average cost.

Stephan
Sodexis.