Re: COGS incorrect when invoices are reposted

["Chris Travers" <..hidden..>]

Let me see if I can answer some of your questions here....

On 9/21/06, Roland Porth <..hidden..> wrote:
>  It would seem that reposting or voiding could have troublesome side effects
> for some or all of the following
>
>  Time-dependent functions:
>
>
> Cost of Goods Sold (which cost is allocated to which purchase)

The current apps screw this up a bit.  It takes the most recent (which
is correct, according to FIFO rules) but fails to post a proper
account adjustment.  This is where the numbers get off.

Iirc, reversing the invoice works properly as a way of voiding it.

> Inventory Levels (adjusted after each transaction)
This Inventory levels are adjusted to include those items previously invoiced.

> Tax Rate applied (rates change, shipping address changes cause different tax
> rates to apply)
The transaction is reversed when reposted or deleted (would work the
same with voiding).

> Currency Conversion Rate applied (todays rate is different than yesterdays)
Conversion rates are applied as of the invoice date.

> Shipping Rates applied (shipping rates change)

LedgerSMB and SQL-Ledger have no internal shipping rate changes.
These are handled on a data entry level.

> Discounts applied  (some discounts are only applicable within a time period)

Prices per item are tied to the invoice.  The master parts table is
not consulted for prices.
> Selling Price applied (some price tables change at a specific date
>  If an order is accepted on Dec 31,2005 at 11:59 PM then voided/adjusted the
> next day, what are the proper accounting and customer acceptable actions
> with regard to all the above time-dependent rates above?

See above.
>  How does LedgerSMB handle these time-dependent prices and rates?  How
> should it?

Most of it is handled pretty well, actually.  The big issue is that
COGS gets off when an invoice is reposted.  I am concerned, however,
that cost calculations might get off when voiding/returning products
using my current scheme (i.e. all items might be set to last cost
which might be erroneous).  I will have to do some additional testing.

Best Wishes,
Chris Travers