Item Costs and Valuation Methods: Transactions That Record Costs in Layers
An item’s cost is recorded in a new cost layer or is updated in an existing cost layer when a batch of journal transactions containing this item is generated and posted to the Inventory account. The batch is posted on release of one of the following inventory documents:
- Inventory receipt
- Inventory issue
- Adjustment
- Transfer
- Kit assembly or kit disassembly
The release of only inventory documents containing an item can post a batch of transactions to the Inventory account and cause the system to update the item’s cost. Each time you need to record a new or changed item cost from any area other than Inventory, an inventory document is automatically generated on release of a particular area's document (such as production order, purchase receipt, or sales invoice).
The following table lists the inventory documents that affect the cost (in the first column) and the documents whose release can generate the inventory transactions (in the second column).
Documents That Affect the Cost | Source Documents and Forms |
---|---|
An inventory receipt on the Receipts (IN301000) form |
|
An inventory issue on the Issues (IN302000) form |
|
An inventory adjustment on the Adjustments (IN303000) form |
|
A transfer on the Transfers (IN304000) form |
|
An assembly or disassembly on the Kit Assembly (IN307000) form | An assembly or disassembly on the Kit Assembly form |