The post Why does the inventory cost of a Purchase Credit Memo not match the cost on the original Purchase Invoice? appeared first on Dynamics 101.
The cost of an inventory item on a Purchase Credit Memo is based on the Costing Method on the Item card. If the Costing Method is FIFO (First In First Out), NAV by default, will adjust the cost to match the cost of the first open, positive Item Ledger Entry (cost layer) for that Item. This is because a Purchase Credit Memo is a negative entry (taking an item out of inventory) and as such must be matched to the appropriate positive Item Ledger Entry.
