On Wednesday, February 8, 2012 9:57:31 PM UTC+1, Cédric Krier wrote:
>
> 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.

The 'method of valuation' is about the valuation of your stock. Drop 
shipment is not
about stock.

> 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.

It is the same product but with a different way of doing account moves as 
the shipment method is different.

> For me the cost price is linked to the warehouse in the way that it is
> the approximate unit price to valuate the stock.

Agree.

> 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.
>

I do not agree as costprice in product is really connected to your stock.

> What I often hear is that you can choose the cost method you want but
> never change it during the exercice.

I fully agree but again cost method is linked to stock valuation.

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