Consider the following scenario in Inventory in Microsoft Dynamics SL:
When you do this, you notice that the issue batch debits the Inventory account and credits the Issues account for the direct cost and fixed overhead. The return credits the Inventory account, and debits the Issues account for the direct cost and debits the Material Overhead Offset Account for the fixed overhead amount. The expectation is that the return would debit and credit the same accounts as the issue batch.
- In IN Setup (10.950.00) screen, Material Overhead Calculation is set to When Received.
- In Inventory Items (10.250.00) screen, the Valuation Method is Standard Cost. On the Cost/Price tab there is an amount for both Direct and Fixed Overhead costs.
- In Issues (10.020.00) screen, you set Type to Issue and issue this item.
- In Issues (10.020.00) screen, you set Type to Return and process a return of this item.
When you do this, you notice that the issue batch debits the Inventory account and credits the Issues account for the direct cost and fixed overhead. The return credits the Inventory account, and debits the Issues account for the direct cost and debits the Material Overhead Offset Account for the fixed overhead amount. The expectation is that the return would debit and credit the same accounts as the issue batch.