Recost Process

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Use this form to re-cost one or multiple bills of material.

As component materials are purchased and received, their cost price may increase or decrease. These purchases and receipts, regardless of whether they are entered through the Accounts Payable or Purchase Order module, will have an effect on the average and last costs for inventory items. Over time, the actual component item cost may differ from the unit cost currently assigned to the bill of material.

Use the re-cost process to update the bill unit cost for each component line in bills of the parent items selected, and recalculate the total estimated cost for the parent items selected. The cost that updates to the bill when the process runs is the current cost of the component item, displayed in IN Inventory Item Cost Maintenance. The cost used will depend on the Costing method that is assigned to the bill.

For example, if the bill costing method is average cost, then the current average cost updates to the bill. If the bill costing method is standard cost, the current standard cost will be updated.

If you select the Update the parent item cost option, Greentree updates the calculated cost of the parent item to the IN Inventory Item Cost Maintenance form for the selected costing methods. Cost adjustment transactions are also generated.

Enter a single parent item code, or a range of codes, and select Update parent item cost if you want to perform this in addition to component updates.

Click Process to run the re-cost process.

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