Re: Why does reposting an invoice affect COGS ?

On Sun, 14 May 2006 08:34 am, lai-H8/[email protected] wrote:
> This COGS sure is difficult and I too have a COGS that is useless;
> however, I never did a repost because I was aware of the problem that it
> creates. I somehow think that by sell a part that isn't in inventory would
> also cause COGS to foul up. Can anyone please confirm this?
>
> I also think it would be helpful to have a list of criteria that the users
> must follow to maintain COGS in check. So far what I am hearing is:
>
> 1) Do not repost!
> 2) Anything else?

I do not re-post but I don't make a big deal out of COGS either.
COGS is: Opening stock + purchases - closing stock. This number is always 
correct in my books even when I re-post. Any problems that I noticed were 
just moving numbers between inventory (current stock) and COGS. Since the 
books are balanced the result always matches the manual calculation. Sure if 
my COGS is lower than it should be than I pay a bit more in taxes but the 
difference was never big enough to justify hours and hours of re-posting of 
all AR/AP invoices in chronological order from the starting date. If I notice 
any major problems in my books at the end of financial year I simply make an 
inventory adjustment. 
I have a vendor called "STOCK CONTROL, LABOUR AND OVERHEAD" and customers 
called "DAMAGED OR STOLEN GOODS " and "WORKSHOP USE / STOCK CONTROL "
Instead of making a GL transaction I make AR or AP invoices and fix any 
problems with inventory or COGS. I definitely would not make any transactions 
from psql or any other client outside SL.

>
> In addition, since my inventory count is okay. So what if I just manually
> update (using psql) the bad COGS transaction in the GL (I think it is the
> GL but I can't remember now) table to reflect the actuall COGS value.
> Would that mess up anything? Please do not go into if this is being right
> or wrong for accounting practice as getting my book to reflect the real
> value is more important to me for the moment.
>
> Thanks!
>
> Tim
>
> > Without looking through the code, I would guess that there is no stack
> > or queue explicitly in the code. Whatever items are being manipulated
> > are sorted by date. If FIFO is desired, the oldest items are removed. If
> > LIFO, then the newest items.
> >
> > FIFO and LIFO are simple rules which may not fit all cases. If you are
> > talking about multiple purchases of the same company's securities (stock
> > market purchases), you can handle each purchase as a separate lot. For
> > tax purposes, it may be convenient to chose one lot or the other when
> > selling stock in the company. If the sales transaction results in a
> > loss, you may wish to chose a newer lot so as to make the transaction a
> > short-term loss. etc. etc.
> >
> > On Thu, 2006-05-11 at 11:49 +1200, Barry Clearwater wrote:
> > <snip>
> >
> >> Dieter (and others) have said that the stock in and out is handled in a
> >> FIFO method.  To me, FIFO means a stack.  Where exactly is this stack,
> >> how big is it and which table holds its data?
> >>
> >> There *must* be a solution to this, though I think Ed's over simplifying
> >> it in his pseudo-code below here.
> >
> > <snip>
> >
> >> LOL
> >> Barry
> >
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