About the Specific Costing Method

Specific is a cost flow method that ties the item's cost directly to the location/lot combination where the item received is posted. An item is issued from inventory at the cost tied to the specific location/lot combination.

Because each material transaction must refer to an item/location/lot, the system uses the unit cost for that reference when generating transactions. If you move a purchase receipt or job completion quantity and new unit cost to an existing item/location/lot that already has a non-zero quantity, the system will post the cost change to the Inventory Adjustment account.

Note: You must use lot tracking to perform Specific costing. Due to the association between a cost and a location/lot combination, Specific costing is suited best for installations that are also using lot tracking to assign lot/batch numbers to the items as they are received.