Hi everyone! Hope someone can share their experience... A BOM item has been produced using wrong BOM consumption, resulting in a hugely inflated average cost. Sales issues have taken place with this inflated cost. To correct this issue, we did the following: 1. Reverse the production using BOM journal. (Needed to correct raw material consumption) 2. Post FG item with correct BOM consumption, thus correct cost.
After these steps, the average costs is still inflated and cost of sales overstated. We then continued with the following: 3. Reverse sales orders with inflated costs 4. Re-invoice at new avg cost We then still have a wrong average cost price. To correct this, we adjusted the receipt transactions (original production orders) to the new cost price (inv management --> periodic --> closing --> adjustment --> transactions). The result is a debit to the stock adjustment account. After this, we proceed with a recalculation on the FG item to correct all transactions (issues) with the correct average cost. Can anyone shed some light if the above process is correct or are we missing something? Although the inventory looks ok, we are not convinced that the GL is correct and still need to test the result. Would appreciate any feedback. Eddie
