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Vendor Rebate reflected to COGS and re-calculate profit for pass transaction

  • 25 March 2023
  • 3 replies
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J
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Hi,

i would like to check in below scenario, what is the best way to record the transaction.

 

The original purchase cost for product A is $100, we purchased 50 pieces, did purchase receipt and posted vendor bill. and we sold 40 pieces by end of the month.

 

On the last day of the month, vendor will review our sales and give us a rebate for Product A, lets say is $20 per piece for all 50 pieces. so our cost for product A become $80.

 

The problem is we already posted the purchase receipt and the cost of $100 is used as COGS, our sales person commmission is calculated by profit, so is there a way to adjust the vendor bill and re-calculate the profit for sales transactions already posted.

 

Thank you

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Best answer by vkumar 27 March 2023, 20:26

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J
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in the real situation, the rebate is not only for one product, and involve multipe purchase receipt, so manually adjust the purchase receipt is not a solution we can afford 

V
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Hi @jay13 

There is no option available to recalculate the profit on invoice once released, or adjust the COGs of item which was received (Receipt released) and sold (Invoice released). You may have to explore an option to manually adjust the rebate amount for commission calculation. 

Regards,

VijayKumarU
aaghaei
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@jay13

You have a bigger fish to fry than being concerned about the commission. The way you explained, your purchase prices are subject to change, and based on your explanation apparently it happens a lot. Aside from sales commission, your accounting COGS and Profit are also impacted accordingly and constantly. To be clear, how would you expect Acumatica or any given ERP treats this considering lots of underlying financial reporting that you have and probably it will flow through different financial periods that some of which may have already been closed and financials are prepared? Can you please clarify?

Reza Aghaei CPA, M. Acc. & Acumatica Customization - If a member helped you, please *Like* their post. If a member provided an answer to your question, please mark it as *Best Answer*.

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