Correcting Shipments that have been receipted with incorrect costing.

Owned by Diane Partridge
Last updated: Feb 24, 2017
3 min read

When a sale shipment transaction has been completed with the wrong costing, please be aware that the original transaction with the incorrect cost will remain in your system forever. However, you can resolve this by inserting another transaction to compensate for the original error. The process to do so is complex and hard.

Whatever compensation you do for the error can only be as of today.

See notes below.

Overview

Shipments use FIFO costing not the current cost on the product.
Reversals of shipments use the current cost on the product.
Salcrd use Costp1 

Refer document to FIFO cost How Readysell FIFO first in first out costing works in your business


Please ensure that you note down the quantity on hand and the costp1 on the products before you commence

Generate a Salcrd with the wrong Costing


  1. Go to the shipment Sales>Shipments
  2. Identify the product on the shipmentline along with the incorrect cost ex tax shipped along with the price it was sold at and make a note of these values. 
  3. From the shipmentlines, click on 'Related' and select 'show product'
  4. From the products module, click on the tab sites>movements
  5. Note down the current quantity on hand and the cost ex tax
  6. Go to the Suppliers tab on the product file and check the costp1 from the primary supplier and note it down. It should be the same as the each cost ex tax on the quantity on hand on the stockk movement.
  7. Once you have noted down the above from the product movement, change the costp1 on the primary supplier to be incorrect cost that was on the original shipment
  8. Click on Save
  9. Generate a sales credit by doing a shipment backwards (do not credit the whole sale shipment) ensure to set the qty with a minus
    Check the cost ex on credit shipment you have just created
    In the field of 'customer order' reference back to the shipment no with the wrong cost  
  10. Leave the default date as the sale shipment date as is.
  11. Check the shipment lines for cost ex, margin, gp is the same as the original incorrect shipment values before you click on Complete
  12. Click on complete to generate the salinv.
  13. You may have more than 1 invoice with the wrong costing repeat the above steps for each incorrectly costed shipment before continuing. 

Adjustting the stock back to zero


Formula : Qtyonhand before the salcrd + the qty in the salcrd = qty to be stock adjusted.
Eg qtyonhand = 15
Salcrd = 12
Qtyonhand now  = 27
Stock Adjustment = 27 on and then off. 


  1. Do a stock quantity adjustment for the total stock on hand now on the product.
  2. Refresh your product view in case you have left this window open whilst doing the salcrd
  3. Go to the product>sites>movements> note down the qty on hand now. Leave the costp1 on the primary supplier as is.
  4. Click on Products>Stock Quantity Adjustment>New> insert the product and the quantity in backwards (to write the stock off) and check the cost ex
  5. Ensure you select the correct Stock Qty Reason that points to the Stock Adjustment Variance gl account
  6. All reduction in stock uses FIFO 

Set the costp1 back to the original cost on the primary supplier

  1. Go back to the product file and set the costp1 back to cost that it originally was for the primary supplier.
  2. Insert another stock qty adjustment with the same qty on hand (Positive) as the previous stock qty adjustment
  3. Check that the cost ex is the costp1 x qty adjusted
  4. Finalise the stock qty adjustment

Now to get the stock on hand back to original by selling the product

  1. Sales>Shipments>New
  2. Leave default date
  3. Insert the product , the qty and check that the costex is the fifo costing not the incorrect cost.
  4. Click on Complete to generate a invoice.
  5. Check the product movements.