Standard Cost Changes and as such result to Negative Profit in Report (Page 1 of 2)

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.

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.

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 https://frontaccounting.com/punbb/viewtopic.php?id=8157

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

You can go through this post https://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.

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

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

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

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

Hello Apmuthu,

I am back again with the issue of Sale Report. I will show you the report for November 2021. It is show a negative Contribution (Profit per product). There are selected products that has this issue. I do not know why? It always brings negative contribution. How do I correct this anomaly.
How do I prevent this from re-occurring?
1. did I forget the standard cost i.e. make it zero so that the purchase price is used as cost?
2. do I always change standard cost whenever there a new purchase?

Now I need to rectify this. I need to file in the database that I need to manually correct these cost to reflect the true picture of the profit per product. This is crucial as it is used to know the product that performs well in terms of sales and profit margin.

thanks apmuthu.

expecting your response soonest.

Popsicles12

Hello Apmuthu,

Thanks for your reply.
I am thinking the problem with this report is due to the fact that I have been upgrading the software from version 2.3.6 to 2.4.6.
Is that the cause? if yes what do I do.
Do i do a new install and just pick the beginning balance for a for a fresh installation?

Kindly advise.

thanks

Popsicles12

hello kvvaradha,

Thanks for the response. But I dont get it. How do i get cost update entry? Kindly assist cos after a while the inventory report begins to give negative profit margin. On the report you see the Cost far higher than the Selling price.

I will be waiting.

thanks

Popsicles.

Hello kvvaradha,

Thanks for your reply.
Once this process is done. How do I make sure this issue does not reoccur?

thanks. expecting your reply.

Popsicles12

Thanks kvvaradha for your prompt response.

I know Frontaccounting uses Standard cost. Why do the Cost change over time when you try to get your Inventory Sales Report. This report is so valuable to me because it shows the performance of all products. they one that is fast selling and the one with the most profit.
So how do I configure it to make sure it adheres strictly to the standard cost or do I just leave out the standard cost. so It uses the purchase price and the selling price to calculate the profit per product or what do you think.

Since my installation has gone through several upgrade, do I do a new installation. In so how do I correct this nomaly?

expecting your reply

Thanks

Popsicles12