Average Unit and RMA
We are on 11.5.10.2. Costing method used is moveing average. We have observed the following scenario.
1) There is an Item 'X1' - QTY = 4 and AvgCost =10
2) Sales Order is created and QTY:2 is shipped; Issue Unit Cost = 10
3) At end of month balance in COG =20
4) A PO is received, for QTY:3 and its purchase-price (Cost) =15
5) Now new AvgCost will be = {(2 * 10)+(3 * 15)}/(2+3)=(20+45)/5=65/5= 13
6) Sales Order is returned by the customer, RMA is created and received. In the RMA current Unit_cost (13), instead of the Unit_Cost(10) on which the SO was issued, is taken by the application.
7) In this situation, how new avgcost is calculated and what is it's effect on COG account? Not sure, but we guess that the COG account will be debted by 26, instead of 20. Similarly, new avgcost will remain 13.