(Inventory – Change Inventory Cost)
Use this screen to change the unit Inventory Cost of one or more stock items.
Inventory Cost Overview
Inventory Cost is always an Average Cost
The Inventory Cost is always an average cost calculation based on receipt values. Whenever a stock item is received, either through a PO receipt or a Job receipt, (or positive Inventory Adjustment), its Inventory Cost is recalculated by averaging the PO or Job cost into the cost of any stock on hand. The Inventory Cost must always tie down to the underlying receipt transaction values.
BOM Cost Rollup does not change Inventory Cost
The BOM Cost Rollup updates the Estimated Cost for your manufactured items and has no impact on inventory value..
Use the Change Inventory Cost screen to update Inventory Value
This cost change is accomplished by a set of inventory transactions made in the background. When a New Cost is updated, all stock is deducted from all locations at the current Inventory Cost and is then added back in at the new Inventory Cost. The debit and credit entries will be made to the GL Account Assignment default Inventory (Asset) account and Adjustments - Inventory or Adjustments - COGs (Cost of Sales) account.
Screen Details
Selection Filters
Use the settings in the upper panel to generate a list of items in the Item List sub-tab.
Item ID
Leave this field blank if you want the list to include all your stock items. If you want to narrow the list down, each character you enter restricts the list to items beginning with the characters entered in this field. For example, in the sample company all the red wagon items begin with ‘1080’. So if you type ‘1080’ in this field and click the Create List button, the list will only include items beginning with ‘1080’.
Description
This field provides an additional filter. You can leave it blank if you want all Descriptions within the item list, but if you want to narrow the list to items containing specific Descriptions, each character you enter restricts the list to Descriptions beginning with the characters entered in this field.
Select All Categories
This checkbox provides an additional filter. If you clear the checkbox, a list of Item Categories displays below the checkbox. You can select one or more Item Categories and your list will be restricted just to items within those categories.
Create List Button
Once your entries are completed in the upper panel, click this button to generate the list in the Item List sub-tab.
Hide Filter Panel Button
Once your list is generated, you can click this button to hide the upper panel and make more room on the screen for your list. Your filter selections remain displayed just above the Item List sub-tab. When the upper panel is hidden, a Show Filter Panel button becomes visible, which you can click it you wish to make the upper panel visible again.
Item List Sub-Tab
Your list of items is displayed in the grid on this sub-tab. Each item’s current Est Cost, Last Cost, and Inv Cost are displayed for reference purposes. .
Mass Replace Button
Clicking this button gives you the option of populating the New Cost column with each item’s Last Cost or Estimated Cost when it differs from its current Inventory Cost.
New Cost
Enter the item’s new Inventory Cost in this field. You are not obligated to make an entry on every item in the list – only on those where a cost change is needed.
NOTE: You are not allowed to change the cost if the item currently has a zero or negative stock quantity.
Clear Button
Click this button if you wish to completely clear the New Cost column.
Update Button
When your entries are completed, click this button and the new cost will take effect.
This cost change is accomplished by a set of inventory transactions made in the background. All stock is deducted from all locations at the current Inventory Cost and is then added back in at the new Inventory Cost.
The posting date is the current system date and the default Reference assigned to the inventory transaction is ‘Change Inventory Cost’.
