What happened

Luminous includes a process that runs periodically to fill in cost values on any order line that was initially recorded with a $0 cost. A defect in that process caused it to multiply the correct per-selling-unit cost by the unit-of-measure conversion factor instead of by the number of units sold.

Example: If you sell a SKU by the case and your account has a conversion rule of 1 case = 4,800 individual units, the process was writing a COGS value of case cost × 4,800 rather than case cost × cases sold. For a single case sold at a $66.94 cost, this produced a recorded COGS of $321,312 instead of the correct $66.94.

The same defect could also spread inflated costs to other zero-cost lines of the same SKU when a previously-inflated line was used as a cost reference.

What has been corrected

The background process now correctly uses the selling quantity at all times. A safeguard has also been added so that any line still holding an inflated historical cost cannot be selected as a cost reference for other lines.

Existing inflated rows have been identified and corrected by resetting them to the original order-level selling-unit cost.

Am I affected?

You may have been affected if all of the following apply:

  • Your account has SKUs that are sold in a unit other than the base tracked unit (e.g. cases, cartons, bundles).
  • A unit-of-measure conversion rule (SYSTEM-type) is configured for those SKUs.
  • You have run a zero-cost backfill or historical cost update job in the past.

SKUs where the selling unit and the tracked unit are the same (no conversion) are not affected.

What you should do

No action is required. The correction has already been applied. If you have accounting entries that were based on the inflated figures, you may want to review and adjust those entries using the now-accurate COGS data in the Transaction COGS report (Insights → Accounting → Drill Down → Transaction COGS).

If you have questions about specific lines or need help reviewing the scope of the correction in your account, contact Luminous Support.