Company: Link Technologies
Case No: L12206. Project: 12.30: LinkSOFT Version 12.30
Logged By: Alvis (Link Technologies) on 30 Mar 2021 04:26PM
Priority: High
Product: Point of Sale
Group: Software Defect
Time Taken: 47.00 (Weight: 47.00)
Version: 12.32
Assigned To: Sanjay (Link Technologies)
Circulation: Alvis, Development, Rashna, Sanjay
Resolve By: Friday, 09 April 2021 11:59 PM [1119 days since logged date]
Status: Closed
Subject: Inventory "Cost Method" does not correctly reflect in the "Movement Report" when the "Item Cost" is changed
Summary:    

Steps to reproduce:

  1. Create a new item using the standard cost method and perform adjust in Qty: 1000 Cost: $10.00
  2. Change items standard cost to $100.00
  3. Perform a stocktake of the item. Count qty: 0
  4. Post stock take and verify movement report

The net movement of the item is -$90,000 - There should be a Journal created to Credit Stock Asset and Debit Stock Adjustment accounts

We need to review the impact of the standard and last cost method has on the valuation of the stock, as well as General Ledger interfaces. This should happen in the following areas:

  1. Purchase Receipts - Cost is changed, the difference should be reflected in GL as well as the stock value in Inventory
  2. Stock Adjustment IN - cost can be changed causing stock revaluation
  3. Transfer from one location to another
  4. Stocktake

Design:

  1. Add a new table to hold Cost Adjustments. This will be a detail table to the "Inventory Location Items"
  2. When items cost is changed, we record the movement and stock valuation based on the relevant costs
  3. Change the Item Movement report to reflect the changes in cost
  4. Send Journals through the integration based on cost changes
Audit Notes:Edited by alvis on 09/04/21 15:12. Edited by sanjay on 07/04/21 11:17. Edited by sanjay on 06/04/21 16:24. Edited by sanjay on 06/04/21 16:24. Edited by sanjay on 06/04/21 16:24. 
06 Apr 202105:11PM Comment 1 by Sanjay (Link Technologies) Assigned To: Rashna (Edge Business Solutions) Followup Date: 06-04-2021 10:24 PM Time Taken: 23.00
PART A - Development work for this case has been completed.

1. The change will be available in version:12.32.0406

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

  1. We have added a "Cost Adjustment" tab to Inventory Master ~> Location. 
  2. Added restriction to change the "Inventory Cost Method" if stock exists
  3. When an Item Cost is changed, we create an entry in the "Cost Adjustment" tab to reflect the change in asset cost
  4. A journal is created that affects the Stock and Cost adjustment GL accounts
  5. The "Inventory Movement Report" changed to show "Cost Adjustments"
  6. Items with Cost Change is tagged for revaluation

3. Affected Areas:

  1. Inventory Valuation and GL Integration
  2. Inventory Price Change Utility ~> Product maintenance (Cost Change) create
  3. "Inventory ~> Cost Update Utility" in the Inventory Menu

4. The issue was caused by:

  1. Correction to handling item costs

5. Notes
6. Next Step
(Review and System Test (Developer) -> UAT (Quality) -> Documentation): System Test and UAT


07 Apr 202111:11AM Comment 2 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 07-04-2021 03:38 PM Time Taken: 16.00
PART A - Development work for this case has been completed.

1. The change will be available in version:12.32.0407

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

  1. Added cost adjustment to the following areas
    1. Purchase Receipts
    2. Stocktake
    3. Stock Transfer
    4. Stock Adjustments - Allows Cost change on Adjustment IN only. 
  2. Tidied up the Movement Report. 
  3. Added a description to the Cost adjustment

3. Affected Areas:

  1. Purchase Receipts
  2. Stocktake Adjust In/Out
  3. Transfers and Purchase receipts

4. The issue was caused by:

  1. Issues not handled in the original design

5. Notes
6. Next Step
(Review and System Test (Developer) -> UAT (Quality) -> Documentation)

----------------------

PART B - Development Reference (Place descriptor for objects changed):


08 Apr 202103:06PM Comment 3 by Sanjay (Link Technologies) Assigned To: Rashna (Edge Business Solutions) Followup Date: 08-04-2021 02:10 PM Time Taken: 6.00
Part A - System Test/UAT Results
1. Developer comments are complete and accurate(Yes/No):
2. Complete Table 1 below:

Table 1 - Test Results
Test NoTest CasePass/FailComments
1Setup replication between HQ, Branch and Standalone machinePass
2

Create item AVG001 in Branch - using Avg cost 
Create item LST001 in branch - using last cost
Create item STD001 in branch - using standard cost

Perform the following transactions for items created above in Branch:

  1. Update stock in product master qty: 100 unit cost: 5 
  2. Receive a purchase of qty: 100 unit cost: 10
  3. Stock Adjustment IN of qty: 100 unit cost: 11
  4. Stock Adjustment OUT of qty: 50
  5. Stock take and count qty: 500
  6. Transfer from Branch to HQ: Qty: 50 freight: 20
  7. Transfer from HQ to Branch: qty: 10 freight: 20
  8. POS Sale of qty: 50
  9. Change standard and last cost to 1
  10. POS Return of qty: 50
Pass

Changes were made to the cost adjustment processes to allow for standard cost method and POS returns.

3Check valuation of items in HQPass

















Environment Details
1. OS version:
2. 
Application version:
3. 
Setup:
4. 
Server: LinkQA6 
5. 
Database: Replication databases

Part B: Next Step:UAT


09 Apr 202101:38PM Comment 4 by Rashna (Edge Business Solutions) Assigned To: Sanjay (Link Technologies) Followup Date: 11-04-2021 07:12 PM Time Taken: 2.00
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
1

Create items as below

  1. LC001 - Last Cost
  2. SC001 - Standard Cost
  3. AC001 - Average Cost
  • Do an adjustment for an SC001 with stock as 50 and cost 12. Cost = $600
  • Validate the cost in the "Movement Report", check values under "Cost Adjustment".
  • Change the standard cost to 12 on the Product Master. Validate the cost in the "Movement Report", check values under "Cost Adjustment".
  • Decrease the cost from 12 to 10 from "Cost-Utility". Cost = $500 . Validate the cost in the "Movement Report", check values under "Cost Adjustment". 
Pass
2
  1. Create PO for LC001 with a cost of 10. Quantity = 50.
  2. Change the cost to $11 from "Cost-Utility. Validate that the "Cost Adjustment" is updated 
Pass
3Review the cost changes with "Return to Stock". Pass
4Review the valuations for items 1 and 2Pass

Environment Details

  1. OS version: Windows Server 2012
  2. Application version: 12.30.0408BETA
  3. Setup: Demo
  4. Server : 10.0.0.14
  5. Database: LINKSOFT-DEMO-123

Next Step

  1. For Closure

    09 Apr 202102:25PM Comment 5 by Sanjay (Link Technologies) Assigned To: Sanjay (Link Technologies) Followup Date: 09-04-2021 08:25 PM
    Thanks Rashna

    09 Apr 202103:12PM Comment 6 by Alvis (Link Technologies) ETC was changed from 09/04/2021 to 09/04/2021
    If you have any queries regarding this support incident, please email admin@linktechnologies.com.au and include the Case No: L12206 in the subject line of all emails regarding this issue.

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