Scenario - the item cost and the cost applied to the sales transaction is incorrect due to the wrong purchase cost is recorded. The incorrect purchase cost may be due to wrong exchange rate, typo on the unit cost in purchase document etc.
Step-by step for correct the item cost
1, If the purchase invoice has been settled, go to vendor ledger entry to un-apply the entry
2. Create purchase credit memo to reverse the incorrect purchase invoice
3. Create purchase invoice for the correct purchase amount
4. Go to Item, select History=> Ledger Entry => Application Worksheet
5. Select the sales document it applied the incorrect cost, then Click Applied Entries
6. In Applied Entries page, click Remove Application
7. Back to item ledger entry then select the sales document and click Reapply to apply the correct purchase cost.
8. Go to vendor ledger entry for apply the incorrect invoice by the corrected purchase invoice or process payment journal for complete the vendor payment transaction.