Issue: The average cost is incorrectly calculated at Inventory Master when FOC items are received via Purchase Receive Form Business Scenario When new supermarkets are launched, the suppliers offer deals to the supermarkets. Most of the deals are FOC deals so that the supermarket can give better prices and attract more customers. Consider the below example: Tappoos gives 10 Cadbury chocolates FOC at the purchase of 100. The Purchase Price for this is $5.00 plus VAT. Assuming this is my first Purchase and the supermarket buys 500 Chocolates, then below is our average cost formula: (Total Cost / Total Quantity) Total Cost: (500*5)+(50*0) = $2500 VEP Total Quantity: 500 + 50 = 550 Average Cost: (2500/550) = $4.55
Last Cost: $5.00 Based on the above pricing, the supermarket can sell this $5.46 Plus VAT making a 20% profit. v 12 System Calculation (Incorrect): The system is currently posting the FOC items at the purchase price via adjustment so the Systems Average Cost populated is $5.00. With this setup, the company is only seeing a 9% profit which is incorrect because the FOC items have also been posted at the purchase price. This was working fine in v11. It has been changed from v12. |