Hi,
This may be a basic question, so apologies if this has been answered elsewhere.
We have been running ByD since October 2014. For most of our sales volume, we use the 3rd party order processing logic, which means that for (almost) all line items on sales orders, purchase orders for external suppliers get created.
A key report for us is gross margin (gross profit) (per order, per account), which we thought we could generate, until we recently found a problem.
Consider the following:
- a sales order is created for 100 widgets X priced at $10/widget, for a total revenue (excl. taxes, freight, etc.) of $1000
- this sales order trigger a PO to procure 100 widgets X at $5/widget from an external supplier, for a cost of $500 (excl. taxes, freight,etc)
- gross margin at this point is $500
Now the customer adjusts their order, or returns some of the widgets - let's say they return 20 widgets. so:
- sales order quantity is reduced by 20, revenue now is 80x$10 = $800
- PO to Supplier is updated to 80 widgets (for simplicity we'll assume the PO had not been delivered yet), so cost is now 80x$5 = $400
The margin report available to us still shows a Cost of $500 (not the new cost of $400), based on the initial cost at the time the Sales Order was submitted - which is no longer correct.
Does anyone else have this problem? How do you solve this?
Thanks & best regards,
Eelco