Ive been evaluation a self-installed erpnext over the last few days and would like to ask some questions regarding valuation of stock.
Our business uses a system of exact cost and im trying to see if erpnext can accommodate our costing model.
In my test I have created 2 items both have VAT @ 14% and FIFO valuation method. I then created Sales orders and materials requests, then 4 POs with different quantities and price to test the posting or the ledger and stock.
What I have noticed on the receipt is the the stock gets debited with rate+vat, should this not be the rate only?
I have tried to remove the vat on the receipt but I noticed that its still gets added to the receipt on save and submit - this is nice and probibly required when I create the invoice but the valuation is calculated with the grand total which included the vat. Im not sure if I have completed the process but even after I created the invoice the valuation of the items includes the VAT about. I think this is incorrect. item rate=R15, qty=2, VAT=R4.2. Stock ledger showings Store=R34.20 (should be R30 no?).
Regarding our valuation approach - we are currently using a erp system that uses a LOT costing model. I understand that there are lots or batches in ERPnext, but I would like to see that the cost of an item when it was receipted (excl VAT) is the cost it will maintain threw out the life cycle of the item, from receipt all the way to shipment and invoice to customer, including if and when it has to be returned or used in manufacturing cycle. Im still busy testing but already at this stage Im not sure if there is a setup issue or a bug in calculating the valuation of items. If further discussion around this is required im happy to give more info. I have already written a small system that does all this nicely, but its not complete and simple to use like ERPnext.
Please shed some light.
Thanking you in advance