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Once the cost of a "Product Transaction" has been calculated by the costing background process and according to what is configured for the product(s) in the corresponding Costing Rule, it cannot be recalculated or deleted.
However and under some circumstances the calculated cost of a product transaction would need to be adjusted, for instance the purchase price of a purchase transaction changes after receiving the product.
If that is the case the calculated cost of the receipt would need to be adjusted to the new purchase price.

Cost Adjustments feature is in charge of managing adjustments created on already calculated transaction's cost.

It is important to remark that this feature takes into account the "costing algorithm" used to calculate costs, therefore it behaves differently depending on:

As a consequence of the above "Cost Adjustment" window manage cost adjustments created for products and therefore products transactions valued at "Average" cost algorithm.

There are different types of "cost adjustments sources" which lead to get the correct "average" cost of a product.
For instance, receipt transactions that were not booked in the same order than happened or receipt transactions that require to add landed costs to its already calculated cost, all of that will impact and therefore require that the "average" cost of the product changes.

It is important to remark that:

Above implies that for instance a "Price Difference Correction" cost adjustment header can have two adjustment lines, one set as "Is Source" = Yes and the other one set as "Is Source" = No.

Let us imagine an scenario when there is only one receipt transaction of 1 unit of a product, valued at 10.00 €/unit. In that case receipt costs are the ones below, which can be reviewed in the "Product" window, Transactions tab:

A manual cost correction set as "Unit Cost" = "Yes" is booked for the receipt for an amount of 2.00 €. That correction creates a cost adjustment that changes the cost of the receipt as shown below:

New average Cost of the product = Total Cost / Stock = 12.00 € / 1 unit = 12.00 €/unit

After that purchase price changes from 10.00 €/unit to 12.00 €/unit.
That change in the price is a unit cost adjustment, which creates a 0.00 € adjustment because the unit cost of the transaction is already 12.00.
This implies no change in the average cost of the product, it remains as 12.00 €/unit

However, let us imagine now that the manual cost correction booked for the receipt for an amount of 2.00 € was set as "Unit Cost" = No, that is an extra cost which needs also to be taken into account. That correction changes the cost of the receipt as shown below, unit cost does not change:

After that, purchase price changes from 10.00 €/unit to 12.00 €/unit.
That change in the price creates a cost adjustment in the receipt of 2.00 = 12.00 - 10.00 €, therefore calculated costs of the receipt change:

Now this new scenario, implies a change in the average cost to 14.00 €/unit, this new average cost includes an extra cost of 2.00 €/unit.

As briefly mentioned above, Openbravo supports different sources of cost adjustments with the aim of covering different live scenarios. Those different types of cost adjustments sources are explained in the next section.

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