Specific Costing Setup
Follow these steps to implement the specific inventory cost method:
- Select the Post to Journal field on the Inventory Parameters form to have all transactions which affect inventory post to the G/L inventory distribution journals. Clear the field to suppress posting to the G/L those transactions that may affect inventory.
- Set the Cost Method field on the Items form, General tab to Specific for all items. (Ideally, you will set this field at the time the items are added to the items file).
- Set the Cost Type field on the Items form, General tab to Actual. The cost type default value comes from the Cost Type field on the Inventory Parameters form when adding new items.
-
Enter the beginning inventory, along with the initial Specific
unit cost, for each item's location/lot.
Note: When processing an ADD transaction on the Item Stockroom Location form to enter stock locations and accompanying beginning inventory balances, enter the cost to be associated with the item's quantity entered. This cost is also posted to the Unit Cost field in the Items file.
-
If you have selected Actual in the
Inventory Parameters form Cost
Type field, and selected the Post to
Journal check box in the General Parameters
form to indicate that the manufacturing modules are to post inventory
transactions to G/L Inventory Distribution Journals, you must also
set up the G/L account numbers that the system uses for this interface.
Specify account numbers in these codes and parameters forms for costing
purposes:
-
Product Codes form, WIP
Tab:
- WIP Material
- WIP Labor
- WIP Fixed Overhead
- WIP Variable Overhead
- WIP Outside Services
- Product Codes form, Misc Tab: Inventory Adjustment
-
Product Codes form, Applied
Overhead Tab: Only one account is needed for each of these:
- Matl Fovhd Applied
- Matl Vvhd Applied
Note: The Fixed Material Overhead Applied and the Variable Material Overhead Applied accounts are required only when overhead is based on Job Material Issues. - Purchasing Parameters: Vouchers Payable
-
Product Codes form, WIP
Tab:
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