Company: Link Technologies
Case No: L12154. Project: 12.30: LinkSOFT Version 12.30
Logged By: Sanjay (Link Technologies) on 02 Feb 2021 05:33PM
Priority: High
Product: Point of Sale
Group: Software Defect
Time Taken: 4.00 (Weight: 8.00)
Version: 12.30
Assigned To: Sanjay (Link Technologies)
Circulation: Alvis, Rashna, Sanjay, Vineet
Resolve By: Wednesday, 10 February 2021 11:59 PM [1171 days since logged date]
Status: Closed
Subject: Incorrect Average Cost when FOC items are received


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.

Audit Notes:Edited by sanjay on 05/02/21 17:36. Edited by alvis on 05/02/21 16:42. Edited by sanjay on 05/02/21 15:14. Edited by sanjay on 05/02/21 15:14. Edited by sanjay on 02/02/21 17:33. 
02 Feb 202105:33PM Comment 1 by Sanjay (Link Technologies) Case L12154 added to project 12.3
02 Feb 202105:34PM Comment 2 by Sanjay (Link Technologies) Assigned To: Alvis (Link Technologies) Followup Date: 10-02-2021 11:33 PM Time Taken: 1.00 Notes: ETC extended from: 19/01/2021 to 10/02/2021
For investigation

03 Feb 202101:08PM Comment 3 by Sanjay (Link Technologies) Assigned To: Alvis (Link Technologies) Followup Date: 03-02-2021 07:06 PM Time Taken: 2.00

PART A - Development work for this case has been completed.

1. The change will be available in version:12.30.0203

2. The following changes were made(Include Database object names, Program classes and any other relevant information):

  1. Corrected the purchase receive process to calculate the average cost using FOC quantity.

3. Affected Areas:

  1. Purchase receive - FOC

4. The issue was caused by:

  1. FOC items were not included in avg cost calculation.

5. Notes
6. Next Step


PART B - Development Reference:

1. Changes implemented was according to the approved design (Y/N):

2. Variations to the approved design:

05 Feb 202103:14PM Comment 4 by Sanjay (Link Technologies) ETC was changed from 10/02/2021 to 10/02/2021
08 Feb 202103:07PM Comment 5 by Rashna (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 08-02-2021 08:42 PM Time Taken: 1.00
QA Results
Tests carried out according to requirements specified on the case header

Test Results Summary

Table 1 - Summarised list of issues
NoTest DescriptionPass/Fail

Create a PO for item PNT13

  1. Purchase Quantity = 500
  2. FOC Quantity = 50
  3. Price = $5.00

Cost Calculations

Last Cost = $5.00

Average = $ 4.54


Environment Details

  1. OS version: Windows Server 2012
  2. Application version: 12.30.0205BETA
  3. Setup: Demo
  4. Server :
  5. Database: LINKSOFT-DEMO-123

Next Step

  1. For Closure

    08 Feb 202103:50PM Comment 6 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 08-02-2021 09:50 PM
    Thanks Rashna

    If you have any queries regarding this support incident, please email and include the Case No: L12154 in the subject line of all emails regarding this issue.

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