Customer return items received back into inventory must be available to re-sell without delay. To ensure the COGS
Cost of Goods Sold is correct when the returned items are re-sold, the correct cost value is assigned to the returned item when the inventory position is created in the designated return warehouse. The inventory position is created when the customer return line item is received.
Item Cost When Shipped
The item cost when shipped is the supplier cost of the item when it was shipped to the customer.
When a new customer return is created, the Item Cost When Shipped value for the customer return line is derived from the cost value on the most recent picklist detail of the associated sales order line.
If a customer return line does not have an associated sales order line, the current cost value of the related inventory position is set to zero.
Cost Assigned When Customer Return is Received
When a customer return line is received, the item cost when shipped value is assigned to the inventory position Acquisition Cost field in the Inventory Position Valuation section.
Currency Differences
There may be occasions when the assigned return warehouse belongs to an ICP Inventory Control Point. A distribution center or place around the globe that inventory items are controlled from. An ICP may have one or more warehouses. with a currency that is different to the currency assigned to the originating sales order. The customer return line cost will display in the same currency as the originating sales order line but it adopts the ICP currency of the receiving warehouse when the inventory position is created upon receipt of the customer return.
Currency Conversion Rates
The currency conversion rate used when the inventory position is created is the rate listed in the Active Currencies section on the Manage Currencies setup page. The ICP Acquisition Cost for each inventory position created will reflect this currency conversion.