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 that is tied to the specific location/lot combination.
Because each material transaction must refer to an item/location/lot, the unit cost is used 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 posts 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.