Topic: Standard Cost Changes and as such result to Negative Profit in Report

Hello All,

Thanks everyone for keeping frontaccounting flying higher. Kudos to Joe and his team.

There is this problem I have in frontaccouting.
1. When I generated the Inventory Sales Report, I discovered that the Cost is higher than the Sales therefore resulting in Negative Contribution.
2. The date picker on the Inventory Sales Report is not working

How do I correct this? Pls Joe & apmuthu kindly help.

Thanks
Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Inventory Sales Report is rep304.php and it works fine at my end in both Windows and Linux on PHP 5.3.1 and 5.3.3 respectively. State your PHP version and other versions and which FA version you are on.

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Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello Apmuthu,

Thanks for your prompt response. I am using Version 2.4.1. I dont know whether it is a bug. For example, standard Cost is say 250 per item. Purchase price is 250 for like One month, and on the third month it is 257 and maybe after another one month it is 260. I expect normally that it will take up the purchase price. On checking the report I discovered a negative contribution.
I went into the database to check and discovered that the products that have negative contribution has a standard cost of 850 when purchase price has never exceeded 280 per item.
Why this?

thanks and expecting more clarification.

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

The said rep304.php was last altered in FA 2.4RC1 way back on 2016-02-23. It is possible that the functions it uses may have been "fixed" thereafter. Try a fresh install of FA 2.4.7+ and see if you can simulate the error.

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello Apmuthu,
Thanks for your reply on rep304. I have upgraded from 2.4.3 to 2.4.7 but the problem still persist. I still have products that have negative profit due to the fact that the system calculated higher cost for the products.

My question is this.
1. How do the system calculate cost that it is now higher than the selling price?
2. How do i rectify this once and for all so that it does not reoccur again?
3. Do I need to put standard cost for all products or leave it blank?

Secondly, I try to upload the database of 130MB into a new installation of 2.4.7 but it is giving me database duplication error. I dont know why. It there another way to do this as I am using PhpMyAdmin cos from within Frontaccounting, it is giving me error. I suppose because the file is large.

Kindly help out apmuthu

thanks

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello @popsicles12

It is very important to know for all of us that why and when the standard cost of an item changes. FA tries to keep the weighted average of the material cost so that the Inventory Valuation reflecting in Trial Balance shall be same as that of in the Inventory Valuation Report.

FA does this by calling update_average_material_cost function from 5 different places in FA.

1. When a Stock Movement is Voided. Even if Location Transfer is Voided. (As per my understanding on Location Transfer Void this function shall not be called because Location Transfer doesn't affect the overall cost of the Item in FA)

2. When Stock Adjustment is Done either positive or negative if the Cost of Adjustment is manually changed to differ from the existing standard cost.

3. When the GRN of Item is recorded.

4. When a Purchased Item is Returned to Supplier

5. When the Direct Supplier Invoice is Recorded.

You can search the said function in FA to find out its location.

You can create a New instance of FA and do random operations to find out the change in Standard Cost and Log it to find out the behaviour of FA.

Q#3: You can do manual feeding of Standard Cost if you totally disable the call of this function in FA.

please go through this post http://frontaccounting.com/punbb/viewtopic.php?id=8157

You can also go through this post http://frontaccounting.com/punbb/viewtopic.php?id=8184

You can go through this post http://frontaccounting.com/punbb/viewtopic.php?id=8238

These problems were discussed in detail earlier.

We are hoping that in FA 2.5 these problems will be handled properly.

www.boxygen.pk

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello Apmuthu,

Please could you kindly attend to my initial post before boxygen answer. As boxygen answer does not answer my question.

I updated from 2.4.3 to 2.4.7 thinking as you suggested that the negative figure for Contribution will be rectified. But after the update the problem still persist.
Present more problems have erupted as I cannot do Location transfer, I cannot void any document, etc.

What I need you to help me do is how do I eliminate the negative figure for the Contribution (profit) per product, How do I prevent it from happening in future?
Moreso, How come the system calculates a cost that is higher that your selling price. How can I stop this from happening?
How do I make this current update void documents and do location transfer.
How do I upload my database into a new 2.4.7 installs seeing that my database is very large 150MB.

thanks Apmuthu in anticipation of your prompt response.

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello Joe,

Could you Please attend to my question "Standard Cost Changes and as such result to Negative Profit in Report". I have been stock with the above problems.
Please help out. This errors is not allowing out books to balance. As where you are to make a profit, the software shows losses which is not supposed to be.

Thanks.

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello

Janusz is rewriting this issue in release 2.5.
There have been many changes here reported from various developers. Therefore we need to rewrite these routines.
Hopefully this will be rectified soon.

Joe

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello

Janusz is rewriting this issue in release 2.5.
There have been many changes here reported from various developers. Therefore we need to rewrite these routines.
Hopefully this will be rectified soon.

Joe

Re: Standard Cost Changes and as such result to Negative Profit in Report

Thanks Joe.

Sorry to bother you a little. Is there a table in the database that I can correct this for the meantime as we use this report to check the profit margin per product and to know which product is doing well and the one not doing well.
Please.
Secondly, I wanted to install 2.4.7 fresh and import my database into it. but the database is large 150MB and it is complaining of timing out. I increase the timing in php.ini and now it is complaining of table duplication. The database in question is an update from 2.2. Any ideas?
thanks.

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Hello Joe,

This is the error I get from Phpmyadmin when I try to import database to  be used by 2.4.7. #1062 - Duplicate entry '16381-10' for key 'PRIMARY'.
how do I correct this.

thanks.

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Clear all the dummy data or drop all tables before importing

Phuong

Re: Standard Cost Changes and as such result to Negative Profit in Report

Thanks Notrinos for your response. But it is not working. I have done that about 10 time and the error remains thesame.

It is not working. Can anyone help me for this has made us remain on a standstill.
Pls.

Thanks.

Popsicles12

Re: Standard Cost Changes and as such result to Negative Profit in Report

Check out the dump of the original db and compare with the new one for duplicate primary key records and reconcile them first. Which 2.4.7 sql file are you trying to import?