Item Costs and Valuation Methods: Documents That Record Costs in Layers

Item cost is recorded in a newly created cost layer or is updated in an existing cost layer when a batch of journal transactions is generated and posted to the Inventory account on release of one of the following inventory documents:

Inventory receipt
Inventory issue
Adjustment
Transfer
Kit assembly or kit disassembly

Only inventory documents can post transactions to the Inventory account and update item cost. Each time it is necessary 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 documents that affect the cost (Documents that affect the cost column) and the documents that can generate these documents on release (Source documents, actions, and forms column).


Documents that affect the cost	Source documents, actions, and forms
An inventory receipt on the Receipts (IN301000) form	A purchase receipt on the Purchase Receipts (PO302000) form A transfer receipt on the Purchase Receipts form An inventory receipt created directly on the Receipts (IN301000) form A labor transaction on the Labor (AM301000) form A move transaction for a production order on the Move (AM302000) form A material transaction for by-products on the Materials (AM300000) form A disassembly transaction on the Disassembly (AM301500) form
An inventory issue on the Issues (IN302000) form	A purchase return document on the Purchase Receipts form A document on the Invoices (SO303000) form prepared for a sales order A shipment on the Shipments (SO302000) or Process Shipments (SO503000) form if a user clicks the Update IN command A document created directly on the Invoices form if the Advanced SO Invoices feature is enabled on the Enable/Disable Features (CS100000) form A material issue transaction on the Materials form A material return transaction on the Materials form A move transaction for a production order on the Move form An inventory issue created directly on the Issues form A disassembly transaction on the Disassembly form
An inventory adjustment on the Adjustments (IN303000) form	A physical inventory count document on the Physical Inventory Review (IN305000) form A landed cost document on the Landed Costs (PO303000) form An AP bill or debit adjustment on the Bills and Adjustments (AP301000) form A disassembly transaction on the Disassembly form A labor transaction on the Labor form. A move transaction for a production order on the Move form An inventory adjustment created directly on the Adjustments form An inventory adjustment created after the costs have been updated on the Update Standard Costs (IN502000) form
A transfer on the Transfers (IN304000) form	An inventory transfer generated from the Receive and Put Away (PO302020) form A shipment on the Shipments or Process Shipments form if a user clicks the Update IN command A transfer created directly on the Transfers form
An assembly or disassembly document on the Kit Assembly (IN307000) form	An assembly or disassembly document on the Kit Assembly form

For information on allocation of purchase price variance amounts for items with different valuation methods, see Allocating the Purchase Price Variance.