Credit memo cost discrepancy in Daily Sales Profitability report

Sometimes the Daily Sales Profitability Report (AR676000) can show a cost discrepancy even when a credit memo has been applied to fully offset an invoice. This happens because of how the credit memo was created

What causes the discrepancy and how to avoid it

When an invoice is related to a sales order and has a related inventory document, its cost is calculated from inventory. But if you create the credit memo from the Invoices form (AR301000), then MYOB Acumatica does not create an inventory document. Instead, it defaults cost from the Inventory Item record. This causes the cost discrepancy in the report.

To avoid this:

• When you need to fully credit a sales invoice, always use the Cancel action on the Sales Invoice (SO303000) form.
• Avoid creating credit memos directly from the Invoices (AR301000) screen for invoices tied to inventory, unless specifically required.

Fixing the report

1. Reverse the credit memo:
   1. Open the credit memo (e.g., CR09876) in the Invoices (AR301000) screen.
   2. Click Reverse.
   3. Release the newly created Debit Memo.
2. Unapply and reapply:
   1. Reverse the application between the original invoice and the credit memo.
   2. Apply the application for the newly created debit memo.
3. Cancel the invoice properly:
   1. Open the original invoice (e.g., 0001234) in the Sales Invoice (SO303000) screen.
   2. Click Cancel.
   3. Release the newly created credit memo.
4. Run the Daily Sales Profitability Report (AR676000). The costs now match and there is no discrepancy.