Small amount credited to COGS in Material Transfer for Manufacture. Why?


When I start a production order, I get this generated stock entry:

As you can see the incoming value is the same as the outgoing value: 14.53€.

But when I see the generates general ledger entries:

So 14.50€ is moved out of “Armazém” (the default warehouse).
But 14.53€ is moved into the “In Progress” warehouse.

As a result I get a credit of 0.03€ in COGS.

One of the items being moved was bought in GBP and the company’s currency is EUR. So my only explanation for this difference is an exchange rate difference. Can that be the case?

If so, does it really make sense that this difference ends up in COGS? Why is COGS being chosen here? Shouldn’t it go into the default Exchange Gain / Loss Account?

If it’s not an exchange rate difference… what are the other possible reasons for this difference?

Please advise.


@nabinhait, @ArundhatiS can you check?

The cloud server is tsuristudio and the document is STE-00004.

Thanks for looking at it.

Hello, any news on this? Thanks!

@nununo sorry for the delay.

Pinging @nabinhait again :slight_smile:

Also @umair

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@nununo Sorry for the delay.

I can replicate the issue, rather I would say it is a known issue to me. Basically the problem comes due to rounding. we don’t post amount in Stock Ledger Entry, instead we post rate, where it is rounded.

This issue is in our to-do list, but unfortunately it needs major changes in the design. Thats why it can take some time to fix it.

Created a github issue: Post amount in stock ledger entry instead of rate, to avoid rounding loss · Issue #6283 · frappe/erpnext · GitHub

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It’s great to know that you managed to replicate it. I subscribed the issue and am looking forward to you to figuring out how to solve it.