Error: 'Average cost below zero for stock code [code]' when returning an item
Problem
When a user tries to return an item with a cost that is higher than the purchase price, the system gives a notification that the Average Cost below zero for Stock Code [code]
Example:
User has 465 * 4.0697 in stock = €1,892.41
Trying to return 462 * 5.75 = €2,656.50
€1,892.41 - €2,656.50 = - €764.09
Even though the user is returning a smaller quantity, the cost is much larger, resulting in a negative value.
Trying to return 462 * 5.75 = €2,656.50
€1,892.41 - €2,656.50 = - €764.09
Even though the user is returning a smaller quantity, the cost is much larger, resulting in a negative value.
Environment
- SIMS: Return to Supplier module
Solution
1. Change the Average Cost:
The user needs to change the average cost of the product to return the item at that cost.
The average cost can be changed by pressing the Avg button located in the stock cards details:
Solution
2. Make an Adjustment Deduct:
This can also be done by making an Adjustment Deduct of the current item and then an Adjustment Add of the same item with the correct average cost.
Cause
The user attempts to return an item with a higher cost than the purchase price.
Related articles:
Related Articles
What do I do when SIMS stops updating because 'stock item value is not zero'?
Question: When posting transactions, why does the system stop updating and gives the error "Stock Item Value is Not Zero"? Answer: While posting Purchases, Return to Suppliers, Adjustment Add and related WIP Transactions, the system includes a ...How to Change a Stock Code in SIMS
To change a stock code: Open SIMS. Click on Admin > Change/Delete Stock Card > Change/Delete Stock Card. 3. Input the old stock code, leave the Delete box unchecked, and input the new stock code. 4. Click on the Save button (floppy disk icon) to ...Can I change or delete stock codes in SIMS?
SIMS provides the option to change or delete a stock code, as detailed below. Both options can be accessed from Admin > Change/Delete Stock Cards. Change a stock code When you access this function, click on the insert button to add the stock code ...What is the formula for average cost calculation with negative quantity?
Negative quantity and average cost calculation When a product(s) sells more than the quantity in stock, the system will use the current average cost as the cost of sale of the product, both for the inventory reports and also for the accounting ...Error: No accounting details for code when exporting from SIMS to SFM
Problem Error: No accounting details for code when exporting from SIMS to SFM Environment SIMS, SFM Solution The Accounting details on SIMS from Stock Groups or Location need to be updated. To allocate the accounting group to the SIMS Stock Group: Go ...
Recent Articles
How to Reverse a Sales/Purchases Transaction in SFM
Reversing Entries in SFM Once users confirm an entry in SFM, they cannot modify any of its elements. The only available option is to reverse the entire transaction and re-post it with the correct values. The system supports both simple reversals and ...Setting Up BOV SEPA v9
Before proceeding, please ensure you are using the latest version of SFM. Starting October 5th, 2025, Bank of Valletta (BOV) will begin processing live transactions using the new SEPA file format (version 9). The older version 3 format will no longer ...How do I process a Nominal Reconciliation?
Procedure for Reconciling a Nominal Account (Current Year > Nominal > Nominal Reconciliation) Account Field: Select the relevant Nominal Account from the drop-down menu that you wish to reconcile. Details Field: Enter any necessary free text in the ...How to Update SFS
For optimal results, update SFS directly from the server. Important notes before updating: - All Users: Log out of SFS, SIMS and SFM (if applicable). - Remote Desktop Users: Log out of SFS, SIMS and SFM before disconnecting from the remote session. ...How to Add Custom Footers per Client basis
If you want to apply the same footer across all your invoices or the same footer across all your statements, please refer to this article: How to insert document footers in SFM If you need to use different footers for specific clients, SFM also ...
Popular Articles
How do I process an End Of Year in SFM?
Overview SFM allows posting into two financial years simultaneously. This means that users do not need to finalise 2024 before starting to post entries into 2025. The end of year procedure will move the “Current Year” data into the "Previous Year". ...Do I need to Process an End-of-Year in SIMS?
SIMS does not require an end of year procedures to be run. However, SIMS controls users to only allow posting of transactions, such as sales invoices, cash sales, adjustments and purchases, within a range of dates referred to as the Posting Period. ...How to setup a System Control Account in SFM? (Bank Account, Cash Account, Stock Control, etc...)
Create the Account in your Chart of Accounts as seen below. Please make sure you use the code depending on your Heading and Sub-Heading digits. After creating the account, you need to specify the account as a System Control Account. Go to Support > ...How to reset your Shireburn remote desktop service (RDS) account password
The password for the Shireburn RDS Account used to connect to RDS server is set to expire after 90 days. A notification is provided to the user daily starting 5 days prior to the expiry date. In order to change password, the following steps need to ...SIMS - User Manual
The attached PDF includes the necessary functions and features of SIMS to get you started. SIMS User Manual.pdf