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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.

Costing Methods

Ensure that the cost is automatically posted to the general ledger whenever an inventory transaction is posted.

Automatic Cost Posting

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.

Expected Cost Posting to G/L

Set the system up to adjust for any cost changes automatically every time you post inventory transactions.

Automatic Cost Adjustment

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.

Average Cost Calc. Type

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.

Average Cost Period

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).

Exact Cost Reversing Mandatory

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.

Item Charge

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.

How to: Post Purchases and Inventory Adjustments

Set up the rounding rules to apply when adjusting or suggesting item prices and when adjusting or suggesting standard costs.

Rounding Method

See Also

Concepts

Set Up Posting Groups
Manage Inventory Costs