Example: Warehouse to Warehouse, Different Cost

This topic provides an example of transfer order costing.
  From To
Entity: 1 1
Site: Cols Columbus Cols Columbus
Whse: Main Dist
Loc: Raw1 InspA
Cost: $1.10 $1.00
  Item uses Specific Costing.

Main/Raw1 cost is $1.10.

Dist/InspA current cost is $1.00.

Material would be received into Dist/InspA at $1.10.

Inventory would receive DB for (qty-on-hand * $.10) with Inventory Adjustment receiving CR for the offset.

 
Price    
Profit:    
FOB: Cols. Determines which warehouse transit location.  
Currency: US$ US$

RECEIVE:IC DIST JOURNAL ENTRIES

Entity/Site/Whse/Loc Account DR CR
1/Cols/Dist/Transit Inv-Matl   .60
1/Cols/Dist/Transit Inv-Labr   .15
1/Cols/Dist/Transit Inv-FOvhd   .20
1/Cols/Dist/Transit Inv-VOvhd   .15
1/Cols/Dist/Transit Inv-Out   .00
       
1/Cols/Dist/InspA Inv-Matl   .60
1/Cols/Dist/InspA Inv-Labr   .15
1/Cols/Dist/InspA Inv-FOvhd   .20
1/Cols/Dist/InspA Inv-VOvhd   .15
1/Cols/Dist/InspA Inv-Out   .00