Set Up Inventory Valuation and Costing
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Set a costing method for each item to govern how its incoming cost is used to assess inventory value and the cost of goods sold. |
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Ensure that the cost is automatically posted to the general ledger whenever an inventory transaction is posted. |
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Ensure that expected costs are posted to the general ledger to see from the interim G/L accounts an estimate of the amounts due and the cost of the traded items before they are actually invoiced. |
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Set the system up to adjust for any cost changes automatically every time you post inventory transactions. |
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Define if the average cost is to be calculated per item only or per item for each stockkkeping unit and for each variant of the item. |
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Select the period of time you would like the program to use for calculating the weighted average cost of items that use the average costing method. |
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Define inventory periods to control inventory value over time by disallowing transaction posting in closed inventory periods. |
"Creating Inventory Periods" in Working with Inventory Periods |
Ensure that sales returns are applied to the original transaction to preserve inventory value (works the same way for purchase returns). |
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Predefine item charge types that you allow to be posted in relation to orders and thereby add to the unit cost of the traded items. |
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Ensure that value entries posted with the item journal are not duplicated by value entries posted with the regular Post Cost to G/L Batch Job. |
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Set up the rounding rules to apply when adjusting or suggesting item prices and when adjusting or suggesting standard costs. |