Current Unit Cost

On the Items or Multi-Site Items form, if the inventory parameter Cost Item at Warehouse was not selected, this field displays the cost for one unit of the item. Otherwise, this field is blank. When you receive a purchase order, the system displays in this field the value from the Purchased Current Unit Cost field on the Item Costs form. When you perform the BOM Cost Roll Up, the system displays in this field the value in the Manufactured Current Unit Cost field on the Item Costs form.

On the Item/Warehouses form, if the inventory parameter Cost Item at Warehouse was selected, this field displays the cost for one unit of the item. Otherwise this field is blank.

If the Source value is Purchased for the item, the purchased current unit cost value displays. If the Source value is Manufactured for the item, the manufactured current unit cost displays.

• Actual Costing: If you update the Current Unit Cost field on the Items or Multi-Site Items form, the system calculates the Material Cost on the Item Costs form in this way: Material Cost = Unit Cost - Duty - Freight - Brokerage - Insurance - Local Freight.
• Standard Costing: If you update the Unit Cost or Current Unit Cost fields on the Items or Multi-Site Items form, the system calculates the Material Cost on the Item Costs form in this way: Material Cost = Unit Cost - Duty - Freight - Brokerage - Insurance - Local Freight.

  The system updates the Current Unit Cost for purchased and manufactured items in this way:

  • Purchased Items: When Average displays in the Update Current Cost field on the Purchasing Parameters form, the Current Unit Cost field contains the average purchase cost of the item. When you receive the item into stock using the PO Receiving function, the system calculates the new average cost and posts it to this field as follows: AC = (OQOH * OAC) + (RQ * PUC) /OQOH + RQ) where AC = Average Cost, OQOH = Old Quantity On Hand, OAC = Old Average Cost, RQ = Receipt Quantity, and PUC = Purchase Order Unit Cost
    Note:  If the cost method is Average, the Unit Cost field contains the Average Unit Cost. Therefore, the Current Unit Cost field does not need to also contain the average cost.

    If you enter Last in the Update Current Cost field, the Current Unit Cost field contains the last cost at which you received the item through the Purchase Order Receiving function. When you process the Purchase Order Receiving transaction, the system posts the Purchase Order Line Item Unit Cost to the Current Unit Cost field.

    If you enter None in the Update Current Cost field, the system never automatically posts values to the Current Unit Cost field. For example, if you are using some type of Actual Costing for the cost flow method, you can use the Current Unit Cost field to maintain a standard cost for the item. To do this, manually enter a cost into this field. The system then never changes the value you enter.

    When you perform the Current BOM Cost Roll Up utility, the system posts the value in this field for purchased items to the Unit Cost field on all material records for this item in all standard bills of material.

  • Manufactured Items: For all manufactured items, the Current Unit Cost field holds the result of the Current BOM Cost Roll Up utility. This utility calculates the rolled-up cost for each manufactured item using the Current Routing and Bill of Material for the item. It totals the material, tooling, fixture, run, setup, overhead, and outside costs, and posts the result to this field.

    For sub-assembly items, the system posts the rolled-up amount to the Unit Cost field on all material records of any bills of material which includes the sub-assembly item.

    On the Item Costs and Item Pricing forms, the default value from the Items or Multi-Site Items form displays.