RMA Inventory Variance Question

I’ve been asked to investigate an issue related to an RMA, where it has appeared to change the cost of a part to 0. I’ve tested the process in our pilot environment and based on the Part Transactions records between the erroneous RMA in Production and my example in Pilot. I am not seeing the entry in the Part Transaction History (Pilot) showing the CST-ADJ transaction that caused the problem.

The only difference, after my testing I am aware of is the fact that they only applied the RMA against a customer record not an invoice.

Looking for a bit on insight as to how this could happen. Maybe the answer is in one of the technical guides that I might have missed.

If RMA is linked to an invoice, during disposition it will pick cost from InvcDtl. Else it will be zero but we can override. What costing method do you use?

We are using Average

If its average, then system will adjust the cost.

That’s what I expected, thanks for the information. Much appreciated.

I just tested that with no invoice and the Material cost had a value, PartTransaction history did not add in the variance.

So what I ended up doing to replicate was:
Did a cost adjustment and set average cost to 0
Did a stock adjustment to put the inventory in negative
Did the RMA for a quanity that still kept inventory in negative, and I got the variance.

Interestingly during testing even though I had set the cost to 0 in Disposition entry the Material cost still showed a value. Digging into that a bit further the RMA receipt has cost fields that are updated, not 100% sure if they get populated from the Avg cost or the PartLot cost or the Last cost.

All I can conclude is it was a perfect storm, -ve quanity on hand and a part cost of 0 on the receipt, and the cost was not picked up on the Disposition.