Unit Cost Field, Item Table

Contains the cost per unit of the item.


Depending on what you selected in the Costing Method field, the Unit Cost field is filled as follows:

  • If the costing method is Standard, then the field is grayed and non-editable.
  • If the costing method is FIFO, LIFO, Specific, or Average, then the unit cost is calculated as follows: Unit cost = inventory value of items on hand (expected cost + invoiced cost) / quantity on hand

If the costing method is FIFO, LIFO, Specific, or Average, then the Unit Cost field is updated in the following cases:

  • When the item is cost-adjusted, automatically or by the Adjust Cost – Item Entries batch job.
  • During the posting of purchase invoices, output, or positive adjustment if one of the following conditions is true:
    • The net invoiced quantity of the item changes from negative or zero to positive.
    • The current unit cost is zero.

If one of these conditions is true, then the Unit Cost field is updated with the value in the Last Direct Cost field on the item card.

Note The Unit Cost field is not updated if the current unit cost is higher than zero and the new unit cost is zero. A unit cost of zero is considered an exception from regular business. Therefore, the current unit cost is retained to provide the last known, relevant value. This exception applies even if the existing inventory has been revalued to zero.

If the item uses the costing method Average, then you can choose the field to open the Average Cost Calc. Overview window, which shows all the source value entries that are used to calculate the average cost, grouped and summarized by average cost period.



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