On 08/02/12 12:29 -0800, Okko Huisman wrote: > For me the costprice is a field that is directly linked to the value of > your goods in the warehouse.The costprice is used to make account moves for > Stock and COGS for stock moves related to the warehouse. > > In case of drop shipment the warehouse is not involved and there is a > direct link between the sales and purchase. The most accurate COGS is the > value of the purchase. > > Answers: > - Is such moves must change the average cost price or not? > No > - Is such moves must behave like if the cost price was fix? > No, I think we should use the price from purchase as the costprice for such > moves.
This is perhaps the common practice but for me this is not logical. Because you change the method of the valuation of the goods. With your way, we are in a LIFO method just for this drop shipment and for all others, it is fixed or average or FIFO. It is like if the dropped product was not the same product as the one in the stock. For me the cost price is linked to the warehouse in the way that it is the approximate unit price to valuate the stock. So for me, if the product land or not in the warehouse doesn't change anything, you have a new information about the cost of the product, you must update it using the choosen method. What I often hear is that you can choose the cost method you want but never change it during the exercice. -- Cédric Krier B2CK SPRL Rue de Rotterdam, 4 4000 Liège Belgium Tel: +32 472 54 46 59 Email/Jabber: [email protected] Website: http://www.b2ck.com/
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